S6440 CONGRESSIONAL RECORD — SENATE June 26, 1997 Act system. That is what we are pro- now proceed to the consideration of H. Mr. DOMENICI. The Senator has posing in the amendment before us. It Con. Res. 108, the adjournment resolu- time on his amendment. is a fairly simple proposition. tion, which was received from the Mr. BIDEN. Parliamentary inquiry. In addition, this amendment includes House. I further ask unanimous con- Can I get time in my own right? separate spending limits for defense sent that the resolution be agreed to Mr. DOMENICI. I yield back my discretionary programs and nondefense and the motion to reconsider be laid time. discretionary programs in the next 2 upon the table. The PRESIDING OFFICER. The time fiscal years. This also reflects the bi- The PRESIDING OFFICER. Without is controlled by Senator DOMENICI and partisan budget agreement. objection, it is so ordered. Senator ROTH. Along with many other Democrats, I The concurrent resolution (H. Con. Mr. LAUTENBERG. I yield back my have long been skeptical of firewalls, Res. 108) was agreed to, as follows: time. but I remind my colleagues that these H. CON. RES. 108 The PRESIDING OFFICER. Is all firewalls apply equally to both sides of Resolved by the House of Representatives (the time yielded back? the discretionary budget and could pro- Senate concurring), That when the House ad- Mr. DOMENICI. We yielded back our tect domestic initiatives from those journs on the legislative day of Thursday, time. who would shift funding from domestic June 26, 1997, it stand adjourned until 12:30 Mr. BIDEN addressed the Chair. discretionary to the military. I will p.m. on Tuesday, July 8, 1997, or until noon The PRESIDING OFFICER. The Sen- also note that the separate defense and on the second day after Members are notified to reassemble pursuant to section 2 of this ator from Delaware. nondefense caps expire after 2 years. AMENDMENT NO. 539 TO AMENDMENT NO. 537 Another provision in this amend- concurrent resolution, whichever occurs first; and that when the Senate recesses or Mr. BIDEN. Madam President, I send ment, which also implements the bi- adjourns at the close of business on Thurs- an amendment to the desk. partisan budget agreement, would re- day, June 26, 1997, Friday, June 27, 1997, Sat- The PRESIDING OFFICER. The vise the rule governing scoring of asset urday, June 28, 1997, or Sunday, June 29, 1997, clerk will report. sales. Under the proposal, asset sales pursuant to a motion made by the Majority The assistant legislative clerk read could be counted in budget calcula- Leader, or his designee, in accordance with as follows: tions only if they do not increase the this concurrent resolution, it stand recessed deficit. This should help ensure we or adjourned until noon on Monday, July 7, The Senator from Delaware [Mr. BIDEN], 1997, or such time on that day as may be for himself and Mr. GRAMM, proposes an don’t sell assets only for short-term in- amendment numbered 539 to amendment No. come if those assets would generate specified by the Majority Leader or his des- ignee in the motion to recess or adjourn, or 537. significant revenues in the future. An until noon on the second day after Members Mr. BIDEN. Madam President, I ask example might be a Government-owned are notified to reassemble pursuant to sec- that further reading of the amendment recreational facility that generates tion 2 of this concurrent resolution, which- be dispensed with. significant user fees. ever occurs first. The PRESIDING OFFICER. Without Madam President, this amendment SEC. 2. The Speaker of the House and the also includes provisions that establish Majority Leader of the Senate, acting jointly objection, it is so ordered. reserve funds for Amtrak, highways after consultation with the Minority Leader The amendment is as follows: and transits. These provisions will of the House and the Minority Leader of the On page 43 of the amendment, strike lines Senate, shall notify the Members of the allow us to implement the comparable 14 through 21 and insert the following: House and the Senate, respectively, to reas- ‘‘(5) with respect to fiscal year 2001— reserve funds that were included in the semble whenever, in their opinion, the public ‘‘(A) for the discretionary category: budget resolution, and they have been interest shall warrant it. $537,677,000,000 in new budget authority and top priorities for me and, given my Mr. LOTT. I yield the floor. $558,460,000,000 in outlays; and longstanding commitment to transpor- The PRESIDING OFFICER. Who ‘‘(B) for the violent crime reduction cat- tation investment, I worked very hard yields time? egory: $4,355,000,000 in new budget authority to make sure that we were going to Mr. DOMENICI addressed the Chair. and $5,936,000,000 in outlays; provide the funds necessary to provide The PRESIDING OFFICER. The Sen- ‘‘(6) with respect to fiscal year 2002— the investment in infrastructure so ‘‘(A) for the discretionary category: ator from New Mexico. $546,619,000,000 in new budget authority and critically needed in our country. f $556,314,000,000 in outlays; and Finally, Madam President, this REVENUE RECONCILIATION ACT ‘‘(B) for the violent crime reduction cat- amendment includes a variety of tech- egory: $4,455,000,000 in new budget authority nical changes that are designed to cor- OF 1997 and $4,485,000,000 in outlays; rect errors and eliminate unnecessary The Senate continued with the con- as adjusted in strict conformance with sub- reporting requirements and to revise sideration of the bill. section (b).’’. the outdated provisions. So, I hope my AMENDMENT NO. 537 (2) TRANSFERS INTO THE FUND.—On the first colleagues will support us in this Mr. DOMENICI. How much time do I day of the following fiscal years, the fol- amendment. I express my appreciation, have on the amendment? lowing amounts shall be transferred from the once again, to Senator DOMENICI and The PRESIDING OFFICER. Forty- general fund to the Violent Crime Reduction the staff, especially Sue Nelson, my four minutes. Trust Fund— (A) for fiscal year 2001, $4,355,000,000; and Budget Committee staff, for their hard Mr. DOMENICI. And the opposition (B) for fiscal year 2002, $4,455,000,000. work and cooperation in the develop- has 44 minutes? Mr. BUMPERS. Will the Senator ment of this legislation. I yield the The PRESIDING OFFICER. Sixty from Delaware yield for an inquiry for floor. minutes. The PRESIDING OFFICER. Who Mr. DOMENICI. So we have used 16. a moment? yields time? Actually, unless Senator LAUTENBERG Mr. BIDEN. I would be happy to. Several Senators addressed the has anything further to say, I believe I Mr. BUMPERS. Could the managers Chair. have stated the case for the DOMENICI- of this bill tell us how many second-de- The PRESIDING OFFICER. The dis- LAUTENBERG amendment No. 537. Does gree amendments there are to this tinguished majority leader is recog- Senator GRAMM want to offer an process? nized. amendment to the amendment? I assume we are on the second-degree Mr. LOTT. Madam President, I have Mr. GRAMM. I think Senator BIDEN amendment process; is that correct? a unanimous consent request that I is going to offer an amendment first, The PRESIDING OFFICER. That is have cleared with the Democratic lead- and after his amendment is disposed of, correct. er. then I will have an amendment, as will Mr. BUMPERS. Could the managers f several other people. tell us how many second-degree amend- Mr. BIDEN addressed the Chair. ments they anticipate on this? PROVIDING FOR ADJOURNMENT The PRESIDING OFFICER. The Sen- Mr. DOMENICI. I do not know. OR RECESS OF BOTH HOUSES OF ator from Delaware. Mr. GRAMM. I believe there will be CONGRESS Mr. BIDEN. Madam President, I won- four. Senator BIDEN will offer one for Mr. LOTT. Madam President, I ask der if the Democratic manager would himself. Once that is adopted, I will unanimous consent that the Senate yield me time off the bill. offer a second-degree amendment. And

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00048 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6441 then we have two other Senators who ment. That is by extending the violent Federal assistance without adding 1 want to offer second-degree amend- crime control trust fund will continue cent to the deficit—through 2002. ments, so they will be seriatim. through the end of this budget resolu- The Biden-Gramm amendment offers Mr. BUMPERS. Then there are five, tion, fiscal year 2002. a few very simple choices: Stand up for because I have one also. I am just won- Senator BYRD, more than anyone, de- cops—or don’t; stand up for the fight dering if we could get some kind of se- serves credit for the crime law trust against violence against women—or quence so we know how they are going fund. Senator BYRD worked to develop don’t; and stand up for increased bor- to be offered so we do not spend the an idea that was simple as it was pro- der enforcement—or don’t. rest of our lives waiting. found—as he called on us to use the Mr. DOMENICI. I say to the Senator, savings from the reductions in the Fed- Every Member of this Senate is you can be assured there will be four eral work force of 272,000 employees to against violence crime—we way that in ahead of you, if you would like to be fund one of the Nation’s most urgent speech after speech. Now, I urge all my fifth. priorities: fighting the scourge of vio- colleagues to back up with words with Mr. BUMPERS. I thank the Senator lent crime. the only thing that we can actually do for his courtesy. Senator GRAMM was also one of the for the cop walking the beat, the bat- Mr. GRAMM. Why don’t you do yours very first to call on the Senate to ‘‘put tered woman, the victim of crime—pro- last? our money where our mouth was.’’ Too vide the dollars that help give them Mr. DOMENICI. That is what I said. often, this Senate has voted to send the tools to fight violent criminals, Mr. BIDEN. Madam President, the significant aid to State and local law standup to their abuser, and restore at second-degree amendment I have at the enforcement—but, when it came time least some small piece of the dignity desk is very simple and straight- to write the check, we did not find taken from them at the hands of a vio- forward. The Senator from New Mexico nearly the dollars we promised. lent criminal. is introducing a budget process amend- Working together in 1993, Senator Let us be very clear of the stakes ment, and what the amendment of Sen- BYRD, myself, Senator GRAMM, and here—frankly, if we do not continue ator GRAMM and myself does is, quite other Senators passed the violent the trust fund, we will not be able to frankly, it merely extends the crime crime control trust fund in the Senate. continue such proven, valuable efforts law trust fund for the extension of this And, in 1994, it became law in the Biden as the violence against women law. agreement. crime law. Nothing we can do today can guarantee I am told by the staffs of the major- Since then, the dollars from the that we, in fact, will continue the Vio- ity and minority that in the budget crime law trust fund have: Helped add lence Against Women Act when the law process agreement that was agreed to more than 60,000 community police of- expires in the year 2000. with the administration, there is a line ficers to our streets; helped shelter But, mark my words, if the trust on page 90 of the concurrent resolution more than 80,000 battered women and fund ends, the efforts to provide shel- of the budget fiscal year 1998. On page their children; focussed law enforce- ter, help victims, and get tough on the 90, it says, ‘‘Retain current law on sep- ment, prosecutors, and victims service abusers and barterers will wither on arate crime caps at levels shown in the providers on providing immediate help the vine. Passing the amendment I agreement tables.’’ to women victimized by someone who offer today will send a clear, unambig- All we are doing here is extending pretends to love them; forced tens of uous message that the trust fund the crime law trust fund. We are not thousands of drug offenders into drug should continue and with it, the his- making judgments on how that will be testing and treatment programs, in- toric effort undertaken by the Violence disbursed within the trust fund. We are stead of continuing to allow them to Against Women Act that says by word, just extending the trust fund to the ex- remain free on probation with no su- deed, and dollar that the Federal Gov- tent of this agreement. And, Madam pervision and no accountability; con- ernment stands with women and President, as I offer this amendment, structed thousands of prison cells for against the misguided notion that ‘‘do- we are maintaining a commitment to violent criminals; and brought unprec- mestic’’ violence is a man’s ‘‘right’’ one of the few specific ways the rec- edented resources to defending our and ‘‘not really a crime.’’ onciliation package can, by virtue of Southwest border—putting us on the the type of legislation it is, maintain a path to literally double the number of I urge my colleagues to support the commitment. Federal border agents over just a 5- Biden-Gramm amendment. The commitment we made was to year period. At the appropriate time—and I am fight violent crime. And, ironically, it The results of this effort are already not quite sure yet when is appro- is working. It is working. And so for us taking hold: According to the FBI’s na- priate—I will ask for the yeas and nays now to extend the violent crime trust tional crime statistics, violent crime is on this. fund, let it expire 2 years before this down and down significantly—leaving But make no mistake about it, what budget agreement expires, means we our nation with its lowest murder rate we are voting on here is whether or not are going to be back at it again in the since 1971; the lowest violent crime we are going to commit now to the ex- year 2000 or before, fighting over some- total since 1990; and the lowest murder tension of the trust fund, the violent thing we now know works. rate for wives, ex-wives, and girlfriends crime trust fund, for the extent of this So I realize we can take a long time at the hands of their intimates to an agreement. That is all this does. That debating this. But the bottom line is 18-year low. is everything it does, but that is all it this: We are not suggesting, as the Sen- In short, we have proven able to do does. ator from New Mexico knows, how this what few thought possible—by being trust fund money within the caps will smart, keeping our focus, and putting Mr. DOMENICI addressed the Chair. be disbursed; merely that we have the our ‘‘money where our mouths’’ are— The PRESIDING OFFICER (Mr. BEN- continuation of the trust fund as long we have actually cut violent crime. NETT). The Senator from New Mexico. as the budget agreement to the year Today, our challenge is to keep our AMENDMENT NO. 537, WITHDRAWN 2002. focus and to stay vigilant against vio- Of all the priorities addressed in this lent crime. Today, the Biden-Byrd- Mr. DOMENICI. Mr. President, I budget package, I believe that none is Gramm amendment before the Senate withdraw my amendment. more important than continuing our offers one modest step toward meeting The PRESIDING OFFICER. The fight against violent crime and vio- that challenge: amendment is withdrawn. lence against women. By assuring that the commitment to The amendment (No. 537) was with- The amendment I am offering, along fighting crime and violence against drawn. with Senator GRAMM seeks to maintain women will continue for the full dura- this commitment in one of the few spe- tion of this budget resolution. Mr. BYRD addressed the Chair. cific ways this reconciliation package By assuring that the violent crime The PRESIDING OFFICER. Under can—by virtue of the type of legisla- control trust fund will continue—in its the previous order, the Senator from tion this is—maintain this commit- current form which provides additional West Virginia is recognized.

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AMENDMENT NO. 540 for any amount paid or incurred to advertise tions 402, 403, and 410 of title 23, United (Purpose: To eliminate tax deductions for ad- or promote by any means any alcoholic bev- States Code, and to develop and implement a vertising and promotion expenditures re- erage. paid media campaign targeting high-risk lating to alcoholic beverages and to in- ‘‘(b) ALCOHOLIC BEVERAGE.—For purposes youth populations to improve the balance of crease funding for programs that educate of this section, the term ‘alcoholic beverage’ media messages related to alcohol impaired and prevent the abuse of alcohol among means any item which is subject to tax driving. our Nation’s youth) under subpart A, C, or D of part I of sub- (4) INDIAN HEALTH SERVICE.—With respect Mr. BYRD. Mr. President, I send an chapter A of chapter 51 (relating to taxes on to the Indian Health Service, $40,000,000 for amendment to the desk. distilled spirits, wines, and beer).’’. fiscal year 1998, $60,000,000 for fiscal year The PRESIDING OFFICER. The (b) CONFORMING AMENDMENT.—The table of 1999, $60,000,000 for fiscal year 2000, $70,000,000 sections for part IX of subchapter B of chap- for fiscal year 2001, and $70,000,000 for fiscal clerk will report. ter 1 is amended by adding at the end the fol- year 2002, to supplement the programs that The assistant legislative clerk read lowing: such Service is authorized to carry out pur- as follows: ‘‘Sec. 280I. Advertising and promotion ex- suant to titles II and III of the Public Health The Senator from West Virginia [Mr. penditures relating to alcoholic Service Act (42 U.S.C. 202 et seq., 241 et seq.). BYRD] proposes an amendment numbered 540. beverages.’’. (c) AUTHORITY TO TRANSFER FUNDS.—The Committee on Appropriations of the House Mr. BYRD. Mr. President, I ask unan- (c) EFFECTIVE DATE.—The amendments imous consent that further reading of of Representatives and the Committee on ap- made by this section shall apply to amounts propriations of the Senate, acting through the amendment be dispensed with. paid or incurred in taxable years beginning The PRESIDING OFFICER. Without appropriations Acts, may transfer the after December 31 of the year in which this amount specified under subsection (b) in objection, it is so ordered. Act is enacted. each fiscal year among the entities referred The amendment is as follows: SEC. 04. ALCOHOL ABUSE EDUCATION AND PRE- to in such subsection. At the end of the bill, add the following: VENTION AMONG YOUTH. (a) IN GENERAL.—Subject to subsection (c), The PRESIDING OFFICER. The Sen- TITLE —ALCOHOL ADVERTISING ator from West Virginia. RESPONSIBILITY ACT there shall be transferred, from funds in the Treasury not otherwise appropriated, to the Mr. BYRD. Mr. President, would the SEC. 01. SHORT TITLE. Chair indulge me momentarily? This title may be cited as the ‘‘Alcohol Ad- entities described in subsection (b) amounts vertising Responsibility Act’’. to the extent specified under subsection (b). I protect my right to the floor. (b) EDUCATION AND PREVENTION PRO- The PRESIDING OFFICER. The Sen- SEC. 02. FINDINGS AND PURPOSES. GRAMS.— (a) FINDINGS.—Congress finds that— ator from West Virginia will be pro- (1) alcohol is used by more Americans than (1) SUBSTANCE ABUSE AND MENTAL HEALTH tected in his right to the floor. any other drug; SERVICES ADMINISTRATION.—The amounts Mr. DURBIN addressed the Chair. (2) it is estimated that the costs to society specified in this subsection shall be: The PRESIDING OFFICER. The Sen- from alcoholism and alcohol abuse were ap- (A) IN GENERAL.—With respect to the Sub- ator from West Virginia has the floor. proximately $100,000,000,000 in 1990 alone. stance Abuse and Mental Health Services Administration, $120,000.000 for fiscal year Mr. BYRD. I thank the Chair. (3) in 1995, the alcoholic beverage industry Mr. President, last Friday nego- spent $1,040,300,000 on advertising, while the 1998, $180,000,000 for fiscal year 1999, National Institute for Alcohol Abuse and Al- $180,000,000 for fiscal year 2000, $210,000,000 for tiators from the tobacco industry and coholism was funded at only $181,445,000; fiscal year 2001, and $210,000,000 for fiscal State attorneys general announced the (4) more than 100,000 deaths each year in year 2002, to supplement substance abuse landmark agreement addressing the the United States result from alcohol-re- prevention activities authorized under sec- impact of tobacco use on our Nation, lated causes; tion 501 of the Public Health Service Act (42 particularly our young people. Al- (5) 41.3 percent of all traffic facilities in U.S.C. 290aa). 1995, or 17,274 deaths, were alcohol related; though this important deal will likely (B) USE OF FUNDS.—Amounts provided to face many obstacles and has a long way (6) in addition to severe health con- the Substance Abuse and Mental Health sequences, alcohol misuse is involved in ap- Services Administration under subparagraph to go toward implementation, it is an proximately 30 percent of all suicides, 50 per- (A) shall be used directly or through grants unprecedented first step toward curb- cent of homicides, 68 percent of man- and cooperative agreements to carry out ac- ing tobacco use and paying for the slaughter cases, 52 percent of rapes and other tivities to prevent the use of alcohol among harm caused by that use. sexual assaults, 48 percent of robberies, 62 youth, including the development and dis- This process has caused our Nation to percent of assaults, and 49 percent of all tribution of public service announcements. other violent crimes; focus on an important public health (2) CENTERS FOR DISEASE CONTROL AND PRE- (7) approximately 30 percent of all acci- danger and is an important step in dental deaths are attributable to alcohol VENTION.— working toward a meaningful solution. abuse; (A) IN GENERAL.—With respect to the Cen- While I applaud the action being (8) alcohol advertising may influence chil- ters for Disease Control and Prevention, $120,000.000 for fiscal year 1998, $180,000,000 for taken to address the pernicious health dren’s perceptions toward an inclinations to effects of tobacco, I am concerned that consume alcoholic beverages; fiscal year 1999, $180,000,000 for fiscal year (9) 26 percent of eighth graders, 40 percent 2000, $210,000,000 for fiscal year 2001, and its evil twin, which also has a stag- of tenth graders, and 51 percent of twelfth $210,000,000 for fiscal year 2002, to carry out a gering impact on our Nation, is to a graders report having used alcohol in the comprehensive strategy to prevent alcohol- large measure being ignored. past month; and related disease and disability. Mr. President, the cost of alcohol (10) college presidents nationwide view al- (A) REQUIRED USES.—In carrying out the abuse to our country is staggering. Ac- cohol abuse as their paramount campus-life comprehensive strategy under subparagraph cording to the National Institute on problem. (A), the Centers for Disease Control and Pre- (b) PURPOSES.—The purposes of this title vention shall— Alcohol Abuse and Alcoholism of the are— (i) enhance and expand State-based and na- National Institutes of Health, alcohol (1) to repeal the existing tax subsidization tional surveillance activities to monitor the is used by more Americans than any for expenses incurred to promote the con- scope of alcohol use among the youth of the other drug. And the results are dev- sumption of alcoholic beverages; United States; astating. (2) to reduce the amount of alcohol adver- (ii) enhance comprehensive school-based The flood tide of alcohol causes more tising to which our Nation’s youth are ex- health programs that focus on alcohol use posed; and than 100,000 deaths each year in the prevention strategies; United States. Alcohol abuse and alco- (3) to increase funding for those programs (iii) develop and distribute commercial ad- that educate and prevent the abuse of alco- vertising to prevent alcohol abuse among holism imposes approximately $100 bil- hol among our Nation’s youth. youth; and lion in cost each year on society. Links SEC. 03. DISALLOWANCE OF DEDUCTION FOR (iv) enhance and expand Fetal Alcohol have been found between alcohol abuse ADVERTISING AND PROMOTION EX- and cirrhosis of the liver, as well as PENSES RELATING TO ALCOHOLIC Syndrome prevention activities throughout BEVERAGES. the United States. other harmful health conditions. Alco- (a) IN GENERAL.—Part IX of subchapter B (3) NATIONAL HIGHWAY TRAFFIC SAFETY AD- hol is a contributing factor in assaults, of chapter 1 (relating to items not deduct- MINISTRATION.—With respect to the National murders and other violent crimes, in- ible) is amended by adding at the end of the Highway Traffic Safety Administration, and cluding fatal drinking and driving acci- following: in addition to any funds authorized from the Highway Trust Fund, $120,000.000 for fiscal dents. SEC. 280I. ADVERTISING AND PROMOTION EX- At the bottom of every empty bottle PENDITURES RELATING TO ALCO- year 1998, $180,000,000 for fiscal year 1999, HOLIC BEVERAGES. $180,000,000 for fiscal year 2000, $210,000,000 for is another family in crisis, another ca- ‘‘(a) IN GENERAL.—No deduction otherwise fiscal year 2001, and $210,000,000 for fiscal reer being destroyed, or another dream allowable under this chapter shall be allowed year 2002, to carry out programs under sec- washed away.

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00050 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6443 The amendment I am offering today a can of beer has the same amount of used cocaine. So it is not a question would eliminate the tax deduction for alcohol as a shot of whiskey or a glass that is even debatable that youths who alcoholic beverage advertising expendi- of wine. By the time they are in col- drink alcohol are more likely to use tures. In addition, it would increase lege, 40 percent have binged on alcohol other drugs. funding for a number of programs that during the previous 2 weeks. Mr. President, as the aforementioned educate and prevent the abuse of alco- In 1994, 8.9 percent—almost 95,000—of facts and figures indicate, alcohol hol among our Nation’s youth. the clients admitted to alcohol treat- exacts a tremendous cost on our soci- What should be of the utmost of our ment programs that received at least ety. These costs are not always clear- concern in our Nation is the impact of part of their funding from the State cut. For example, consider the costs of alcohol on our children and our grand- were under the age of 21, including over the lost productivity of a person show- children. 1,000 under the age of 12. And 31.9 per- ing up at work on a Monday morning I am introducing this amendment on cent of youth under the age of 18 in with a hangover and inadequately per- behalf of the children who died because long-term State-operated juvenile in- forming his or her job, perhaps making they were drinking and driving, and on stitutions were under the influence of a mistake that results in injury. How behalf of the millions of children who alcohol at the time of their arrest. many of us would like to ride in the are drinking right now without the full While our Nation’s education system automobile that was made on such a appreciation of what they are doing to needs repair, it seems that our society Monday morning? How many of us themselves and what they could poten- has been successful in teaching these would like to fly on the airplane whose tially do to others. kids something. The problem is that maintenance man or woman, whose Alcohol is the drug of choice among what we have taught them is deadly. mechanic was on a binge the previous teenagers. Drinking impairs one’s judgment. We day? While there is no way to accu- Mr. President, more specifically, and all know that. Nobody will dispute rately gauge the enormous costs that looking at this chart compiled by the that. Alcohol mixed with teenage driv- alcohol exacts upon our society, there National Center on Addiction and Sub- ing is a lethal, a lethal combination. can be no doubt that the pleasures of stance Abuse, the use of alcohol by our We read about it all the time in the alcohol consumption exacts a consider- Nation’s youth is highlighted among Washington Post, the Washington able price on our Nation. The purpose of the amendment that I different age groups, including children Times, and every newspaper in the introduce today is simple. My proposal land. In 1995, there were 1,666 alcohol- between the ages of 12 and 17. Among would simply tell all producers of alco- related fatalities of children between children between the ages of 16 and 17, holic beverages that they can no longer the ages of 15 and 19. The total number 69.3 percent have at one point in their deduct the costs of their advertising of alcohol-related fatalities that year lifetimes experimented with alcohol. expenditures on those products from Clearly, as made evident by these was 17,274. Mr. President, for many their Federal income tax liability. alarming statistics, alcohol is the lead- years I have taken the opportunity, While advertising is generally deduct- ing problem among teenagers—not when addressing groups of young West ible as a legitimate business expense, I marijuana, not cocaine. Virginians, to warn them about the believe there exists a moral, legitimate In the last month, approximately 8 dangers of alcohol. I supported legisla- reason to create an exception for pro- percent of the Nation’s eighth graders tive efforts to discourage people, par- ducers of alcoholic beverages whose have been drunk—have been drunk. We ticularly young people, from drinking products exact such considerable costs are talking about eighth graders, 13 any alcohol. For example, 2 years ago I on our society. My proposal would not years old—13-year-olds. I never heard authored an amendment that requires make illegal any advertising of alco- of such a thing when I was in my teens, States to pass the zero-tolerance laws holic beverages. It does not say that as a young man, or in my middle age. that will make it illegal for persons any advertising of alcoholic beverages We are talking about eighth graders, under the age of 21 to drive a motor ve- is unconstitutional. It does not at- 13-year-olds. hicle if they have a blood alcohol level tempt to ban such advertisements, nor Every State has a law prohibiting the greater than .02 percent. This legisla- would it create any additional Federal sale of alcohol to individuals under the tion not only helps to save lives but it bureaucracy to regulate alcohol prod- age of 21. How is it then that two out also sends a message to our Nation’s ucts. Rather, it would simply end the of every three teenagers who drink re- youth that drinking and driving is American taxpayers’ subsidization of port that they can buy their own alco- wrong, that it is a violation of the law, alcohol advertising by amending the holic beverages? and that it will be appropriately pun- Internal Revenue Code of 1986 to in- The youth of this country, who at the ished. Unfortunately and tragically, we clude a disallowance of any deduction delicate age of 15 should be enriching all know someone, whether it is a fam- for any amount paid or incurred to ad- their minds with schoolwork, improv- ily member or a friend or an acquaint- vertise or promote by any means any ing their bodies with exercise, and dis- ance, whose life has been cut short by alcoholic beverage. This is not a sin covering the wonders of life through a drunk driver. These are senseless tax. It is, rather, an end to the sin sub- God and family values, instead are ex- losses that are devastating to the fami- sidy that has left American taxpayers perimenting and endangering them- lies and the friends who are left behind. footing the bill for both alcohol adver- selves with booze. Junior and senior As if the aforementioned statistics tising and the high health care costs high school students drink 35 percent about youth alcohol use and the results inflicted on society by alcohol con- of all wine coolers and consume 1.1 bil- of that use are not frightening enough, sumption. Now there may be those who lion cans of beer a year. I know, be- young people who consume alcohol are argue that it is wrong to single out al- cause I pick some of them up off my more likely to use other drugs. cohol advertising expenses. I counter lawn—I am talking about the beer On the chart to my left, Senators that with the question: What other cans, not the young people. will note these statistics, compiled by product, with the possible exception of I will repeat what is common knowl- the National Center on Addiction and tobacco, costs society $100 billion each edge to us all: Every State has a law Substance Abuse at Columbia Univer- year? What other product results in prohibiting the sale of alcohol to indi- sity, statistics which show that 37.5 more than 100,000 deaths each year in viduals under the age of 21. Alcohol is percent of young people who have con- the United States? The statistics are a factor in the three leading causes of sumed alcohol have used some other il- indeed staggering. death for 15- to 24-year-olds—the three licit drug, versus only 5 percent of Mr. President, in these complicated leading causes—accidents, homicides, young people who have never consumed times, the innocence of youth, the in- suicide. In approximately 50 percent to alcohol; 26.7 percent of those who have nocence of youth is dashed away at an 60 percent of youth suicides, alcohol is consumed alcohol have tried mari- early age by the irreverent messages involved. juana, versus 1.2 percent of those who spewing from the television set. Pro- Links have been shown between alco- have never consumed alcohol; 5 percent fanity and violence on television pro- hol use and teen pregnancies and sexu- of youths who have partaken of alcohol gramming are interrupted only by the ally transmitted diseases. Eighty per- have tried cocaine, while only 0.1 of 1 aggressive commercials seeking to in- cent of the teenagers do not know that percent of those who do not drink have fluence viewers in the name of profit.

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00051 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6444 CONGRESSIONAL RECORD — SENATE June 26, 1997 Our impressionable youth, pressured by Brewing, also advertised on MTV’s racy threat of regulation of beer ads. No. 1 brewer the self-indulgent motives of revenue- youth dating show, ‘‘Singled Out,’’ just after Anheuser-Busch revealed last month that it hungry corporations are bombarded by 7 p.m., when 52% of the audience was under quietly pulled all its beer advertising from MTV, saying it hoped to ‘‘ensure that our in- countless images glorifying an unreal- 21. And Stroh advertised Schlitz Malt Liquor during MTV’s prime-time music-video show tent is not misperceived in today’s climate.’’ istic view of reality, often insincerely at 8:30 p.m., when 56% of the audience was The Madison Avenue’s main trade group, the portraying alcoholic beverages as an under 21. American Association of Advertising Agen- ingredient for ideal lifestyles. Our chil- That same week, Adolph Coors ran two ads cies, recently abandoned its longtime stand dren are besieged with the message on the Black Entertainment Television against restrictions on ads for products like that if you drink you will attract beau- channel after 8 p.m., when 65% of the audi- alcohol and cigarettes. It proposed setting up tiful women, if you drink you will be ence wasn’t old enough to drink. Also that a new self-regulation committee, warning popular, if you drink you will excel at week, Anheuser-Busch ran an ad for its that the industry otherwise faces a govern- Budweiser brand just after 8:30 p.m. on BET ment crackdown on ads for beer and other sports. Are these the images of reality during music-video programming, when 70% adult products. or do they leave out something impor- of the audience was under 21. But setting reliable guidelines for such ads tant? Do they leave out some impor- These commercials look like clear viola- remains tricky. TV executives argue that tant facts about alcohol consumption? tions of the chief beer industry trade group’s Nielsen ratings aren’t reliable measures of What about the negative and all too own guidelines for TV ads. ‘‘Beer advertising kid viewership—even though the ratings are prevalent results of alcohol consump- . . . should not be placed in magazines, news- the TV industry’s gold standard for gauging tion—the hangovers that result in lost papers, television programs, radio programs the cost of ad time. Says John Popkowski, or other media where most of the audience is executive vice president in charge of ad sales productivity, the tragic deaths, the in- reasonably expected to be below the legal at MTV Networks: ‘‘If you pick one show on juries caused by a drunk behind the purchase age,’’ states the Beer Institute’s an isolated night you might find one that’s wheel, the hospital visits for alcohol published ‘‘advertising and marketing guide- an aberration statistically,’’ since cable poisoning, the horrible effects of cir- lines.’’ The industry is pointing to these channels’ viewership is sometimes relatively rhosis of the liver and the families torn guidelines in an aggressive lobbying effort small. apart by alcohol abuse. against proposed new federal restrictions of On the E! Channel, for instance, Miller beer and liquor advertising. Brewing ran a Foster’s ad on Sept. 2, just be- The industry indicates that their ad- fore 7:30 p.m., during the show ‘‘Melrose vertisements do not target young peo- The number of ads reaching kids is ‘‘very troubling,’’ says Jodie Bernstein, director of Place.’’ That night, 41% of the show’s audi- ple, although this is debatable. A Janu- the FTC’s bureau of consumer protection and ence was under 21, according to Nielsen. But ary Wall Street Journal article, detail- a top official involved with its ongoing probe David T. Cassaro, senior vice president in ing a competitive media reporting sur- into alcohol marketing to kids on television. charge of ad sales for E! Entertainment Tele- vey commissioned by the Journal, Her bureau enforces laws banning unfair or vision, says that from July 1 to Sept. 29 be- tween 7 p.m. and 8 p.m., only about 28% of E! deceptive ad practices, including a statute found that beer advertisements are Entertainment’s audience was under 21. that says it’s unfair to aim ads at people who often aired during programs that are Overall, Mr. Cassaro adds, only 19% of E! En- aren’t legally able to buy the products. A watched by large numbers of adoles- tertainment’s total audience isn’t old company that runs afoul of such laws can cents. The findings of this survey are enough to drink. face fines, orders to pull ads and regular FTC ‘‘With networks like BET the numbers are extremely disturbing. In one example, screening of future advertising. referenced in the article, a beer ad ran so small that they jump all over the place,’’ Ms. Bernstein won’t comment on the FTC’s adds John Goldman, a spokesman for Adolph during the airing of a popular cartoon probe. However, she says that in any inves- Coors. ‘‘You take as much care as you can show on the MTV station of which 69 tigation, the commission would look first at but the programming changes often.’’ Mr. percent of the audience was comprised whether alcohol advertisers are ‘‘following Goldman says that in the third quarter, the of children under the age of 21. their own guidelines.’’ For example, ‘‘Is it over-21 audience reached by BET between 7 Mr. President, I ask unanimous con- OK if [the percentage of underage viewers] p.m. and 8 p.m. ranged from 80% to 43%. gets up to 70% once in a while? I don’t think sent to have printed in the RECORD the Mr. Goldman adds that Coors doesn’t buy it’s OK.’’ And she says the commission would Wall Street Journal article. MTV as a matter of company policy. ‘‘We ‘‘never act on just one episode or one mis- want to avoid any misperception that we’re There being no objection, the article take—we would act on the pattern.’’ aiming at an underage audience.’’ was ordered to be printed in the Brewers and TV executives insist that it Mr. BYRD. Mr. President, looking at RECORD, as follows: doesn’t make sense to evaluate beer ads on a another chart to my left, this chart [From the Wall Street Journal] single night’s audience. ‘‘Any attempt to analyze the beer industry’s media-buying demonstrates competitive media re- ARE BEER ADS ON BEAVIS AND BUTT-HEAD practices by examining only selected broad- porting estimates that the alcoholic AIMED AT KIDS? cast media buys during a one-week period is beverage industry spent more than $1 (By Sally Beatty) misleading and simplistic,’’ said Miller billion on alcohol advertising in 1995. When a commercial for Schlitz Malt Liq- Brewing in a statement responding to ques- In contrast, in 1995, the Federal in- uor appeared last year on MTV during ‘‘My tions about the survey. Miller added that vestment in the National Institute on So-Called Life,’’ a show about teenage girls, more than 75 percent of the broadcast audi- Alcohol Abuse and Alcoholism was a beer maker Stroh called the airing an aber- ence reached by the programming it buys is mere $189.8 million for alcohol re- ration. over 21. search. Does the industry expect us to Even as the ad helped launch a Federal At Stroh, officials argue that there’s a dif- Trade Commission probe into alcohol adver- ference between putting ads in front of kids believe that it would spend this huge tising to children, Stroh said it had a long- and targeting them explicitly. ‘‘We under- amount of money—$1.1 billion—if it time policy of aiming ads only at adults of stand that when an ad is run it’s going to be were not getting something for that legal drinking age; MTV said the ad ran by seen by some people who are under 21 years money? Some may argue that this leg- mistake because of a last-minute program- of age, whether it’s a billboard, in a maga- islation would adversely affect the ad- ming switch. zine or on TV,’’ says Stroh general counsel vertising industry by forcing producers In fact, the commercial was hardly an iso- George Kuehn. ‘‘That does not mean we tar- of alcoholic beverages to eliminate lated event. Despite the beer industry’s in- get the group that is under 21.’’ their advertising expenditure. Poppy- sistence that it doesn’t target kids, its com- Whether the beer industry advertises to cock. I do not believe that this would mercials regularly wash over underage view- kids became a hotly debated question after be the case. ers. A survey by Competitive Media Report- the liquor industry last year abandoned its ing for the Wall Street Journal showed that longstanding guidelines banning TV ads. Alcoholic beverage producers spend during one arbitrarily chosen week—the first That sparked a national uproar over expos- large amounts of money to advertise week of September—youths under the drink- ing kids to alcohol ads—putting the beer in- their products because it encourages ing age made up the majority of the audience dustry in the spotlight. people to consume their product and it, for beer commercials on several occasions. In Congress, Rep. Joseph P. Kennedy II (D., therefore, increases sales. Eliminating For instance, Molson beer was advertised Mass.) has introduced legislation that would the advertising deduction will not during a 10 p.m. episode of ‘‘Beavis & Butt- ban most forms of alcohol advertising from 7 eliminate the fundamental business Head,’’ the popular MTV cartoon series a.m. to 10 p.m., require health warnings on practice. By making these advertise- about two obnoxious teens. Fully 69% of all print, radio and TV ads and require alcohol ments less profitable, this amendment the episode’s viewers that night were under ads that run in publication with a 15% or 21—the legal drinking age in all 50 states— more youth readership to appear only in may reduce the overall amount of alco- according to Nielsen Media Research’s wide- black-and-white text. hol advertising in our society. How- ly used ratings data. Molson, which is mar- There are already signs that brewers and ever, let there be no doubt that the al- keted in the U.S. by Philip Morris’s Miller Madison Avenue are worried about the cohol ads will keep on running. You

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00052 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6445 can bet your bottom dollar on that. don’t refer to them as native Ameri- Mr. ROTH addressed the Chair. They will. The difference, however, will cans. I am a native American. If I am The PRESIDING OFFICER. The Sen- be that the American taxpayer will no not a native American, of what coun- ator from Delaware. longer be subsidizing this activity and try am I a native? I refer to them as Mr. ROTH. I yield 5 minutes to the that the money will go, instead, to get- the original Americans, or the first distinguished Senator from Kentucky. ting the other side of the alcohol story Americans. The PRESIDING OFFICER. The Sen- out. That is what we need to start The harm that alcoholic beverages ator from Kentucky is recognized. doing. We need to start now getting the cause our Nation is not a second-rate Mr. MCCONNELL. Mr. President, I other side of the alcohol story out. It is hangover, but a serious affliction that thank the chairman of the Finance perhaps not the most popular thing po- kills more than 100,000 people each Committee for yielding me a few mo- litically to attempt to do here, but it year. By adopting this amendment, we ments. I listened very carefully to my needs to be done. would be making a positive effort to good friend and colleague from West This amendment is all the more nec- improve the health of our Nation, par- Virginia and to his observations about essary because, last year, the Distilled ticularly of our children, and to send a the dangers of drinking and driving, Spirits Council of the United States de- sober message to those who are capital- with which I completely concur. cided to reject its self-imposed ban on izing on profits generated by recklessly Of course, representing Kentucky, as advertising hard liquor on television advertising alcoholic beverages my friend from West Virginia knows, and radio. I decried this decision by the through far-reaching and seductive not only do we have 60,000 tobacco Distilled Spirits Council because it is a means, such as television. growers, which is, of course, the sub- step backward at a time when our Na- We should act in the best interests of ject of a number of amendments that tion is working to curb alcohol abuse. the American people and announce may come on this bill; we are also the Now hard liquor advertisements will be ‘‘last call’’ to those who have been re- home of bourbon. If this kind of whis- flowing over the airwaves. This is not ceiving tax breaks for peddling booze, key is not made in Kentucky, it cannot the direction in which our Nation take a step in the right direction and be called bourbon. Let me suggest that should be moving. begin to repair some of the damage there are no industries—and I checked According to the Joint Committee on brought by alcohol in this country. Let with the Finance Committee staff— Taxation, the elimination of the tax us begin by putting a cork in the tax that have been singled out by law and, deduction would result in $2.9 billion in loophole that has left American tax- as a result of being singled out, are not savings over 5 years. My amendment payers picking up the tab for the alco- allowed to deduct their expenses for ad- targets the savings from the elimi- hol industry. vertising. So this would be a first. nation of the disallowance to programs Now, Mr. President, I am very well To begin with, as a matter of tax pol- to prevent alcohol abuse among our aware that a point of order will be icy, certain kinds of legal industries Nation’s young people and to educate made, or can be made. I am well aware are not allowed to deduct their adver- children about alcohol. The Substance of that. But I think the debate has to tising, and others are. There is also— Abuse and Mental Health Services Ad- start at some point. I think that point while we are thinking of both ciga- ministration would be given increased is now. We hear a great deal about to- rettes and alcohol—another important funds to supplement programs to pre- bacco and we hear a great deal about distinction. There is no argument that vent the use of alcohol among young children, about children’s health. I misuse of alcohol is a problem in this people and to fund a media campaign hope those who support those programs country. As a Senator from a tobacco- designed to counteract the constant and talk much about them would sup- producing State, I never make the ar- bombardment to which our children port this effort. We are talking here gument that smoking cigarettes is are subjected daily by alcohol adver- about children’s health. We are talking good for you. Obviously, it isn’t. But tisements. It is important to give our here about something that kills 100,000 there are many in the medical profes- children information about the risks people every year. I am not seeking to sion who would say that the consump- associated with the consumption of al- ban alcohol. I am not seeking to regu- tion of alcohol, if used properly—prop- cohol. We should not sit idly by and late alcohol. I am simply seeking to erly—is actually good for you. I am not leave unchallenged the messages of al- end the subsidization by the taxpayers a physician, I can’t make that argu- coholic beverage advertisements that of this country of alcohol. ment, but there is a growing argument only good things happen to those who Think about it. Think about it on being made by many in the medical drink alcohol. your way home tonight as you drive community that a certain amount of This amendment will also direct out the George Washington Parkway alcohol, properly used, is actually good funding to the Centers for Disease Con- and see someone in front of you wob- for you health, not bad for your health. trol and Prevention to carry out a bling from one side of the road to the So we have here a legal product, Mr. comprehensive strategy to prevent al- other. Think again. Suppose your wife President, which, arguably, if properly cohol-related disease and disability. is up at Tyson’s Corner getting ready used, might actually be good for you, The CDC would be given authority to to drive home with the children and which the distinguished Senator from enhance and expand fetal alcohol syn- that same fellow who was in front of West Virginia, I gather, is saying when drome prevention activities through- your car wobbling may kill your wife misused, of course, is clearly a terrible out the Nation. According to the and your children. thing and a disaster not only for the NIAAA, fetal alcohol syndrome is esti- So let’s start talking about it. Let’s person misusing it, but for others who mated to affect from one to three chil- start airing the subject here. Let’s stop may be affected by that, and that be- dren out of every 1,000 live births. putting it behind the curtain, putting cause a product may be misused, the To address the distressing problem of it under the rug, saying it is taboo. It Government should step in and say: alcohol-impaired driving, the National is not. It is not taboo. Think about our Your advertising is not allowed. Highway Traffic Safety Administra- children, our grandchildren. This is the Regardless of how you may feel about tion’s alcohol-impaired driving incen- product that kills other people. To- this—— tive grant program, previously known bacco may kill me. Tobacco may kill Mr. BYRD. Will the Senator yield? as section 410, would receive additional the individual who smokes it. But alco- Mr. MCCONNELL. Yes. funding. Funding is also made avail- hol may not kill the person who im- Mr. BYRD. For a correction only. My able to NTSA to launch a media cam- bibes; it may kill the innocent—the amendment does not say your adver- paign about the perils of driving under driver in the other car. tising will not be allowed. I am not the influence. So I hope that Senators will support saying that at all. The alcohol industry The Indian Health Service will re- my amendment. As I say, I am sure may continue to advertise. I am just ceive funding for its alcohol abuse pro- that there is a process or a motion saying, let’s stop the subsidization of grams to address the issue of alcohol available, but I am accustomed to that advertising, the subsidization by abuse, which has such a devastating ef- those things. I say let the Senate work the taxpayers. fect on the first Americans. I don’t its will. Mr. MCCONNELL. I thank the Sen- refer to them as native Americans. I I yield the floor. ator. I think I did understand his

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00053 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6446 CONGRESSIONAL RECORD — SENATE June 26, 1997 amendment to disallow a deductibility has just spoken. West Virginia grows est problems—no doubt. Yet, there is for advertising, which would make this good tobacco crops as well, and the in- no scientific evidence that would even the only industry of which the Finance come from those tobacco crops cer- suggest the casual relationship be- Committee is aware where such deduct- tainly impact upon many families in tween advertising and abuse. ibility would be disallowed. many counties of West Virginia. We are In order to get to the root of the Aside from my home State and the talking about here, though, a product problem of alcoholism and all of the product, which, if properly used, might that results in the maiming and in the problems that it brings, study after actually be good for you, I wonder if killing of people—innocent men, study after study has been made in the my friend from West Virginia doesn’t women, and children. relationship of advertising. In fact, share my concern that once we go in The distinguished Senator from Ken- during the 1980’s, when the advertising this direction, we might find other ac- tucky mentions the carbon dioxide for alcohol products was increasing, ac- tivities that some may find offensive emissions and other greenhouse gas tual consumption per capita actually being subject to the same kinds of ef- emissions and possible implications of was decreasing. So not only does adver- forts to disallow deductibility for cer- those emissions on health. People who tising not impact abuse, it doesn’t even tain kinds of business expenses. breathe that air may well, indeed, suf- impact the overall consumption. I think, for example, West Virginia fer an adverse impact on their health. Singling out a product is not, I don’t and Kentucky used to trade back and But they don’t go out and maim. They think, what fair tax law is about. forth in terms of coal production. One don’t go out and drive an automobile, So let’s be upfront about it, because year West Virginia would be first; the lose their proper judgment, and end up I am familiar with the broadcast indus- next year Kentucky would be the first. killing innocent people. They do not go try. It has economic impacts on small Alas, neither are first anymore. Wyo- home and abuse their spouses if they business. It has economic impacts. And ming is. But there are many Americans smoke cigarettes or if they breathe air once we start singling out products, do who think, as a result of the burning of blown from them. They don’t go home we start talking about red meat, eggs, coal, that the area is polluted and that, and abuse their children. They don’t go or sugar? Where do we draw the line? as a result of that, people contract home and assault and batter the other The impact it might have on the na- lung problems. In fact, there is an ini- members of their family. tional pastime? We could say, ‘‘OK, we tiative by the Clinton administration I am talking about a product that we don’t need it in the broadcasting indus- just announced this week which the all know—it is not just this Senator’s try. We can all pay for pay-per-view’’— Senator from West Virginia and I both opinion. We all know when we read the the impact on an industry within have serious reservations about de- daily newspapers about the effects of itself. And the list goes on and on try- signed to cut down on air pollution—so drinking and driving. We all read the ing to explain to our constituents why the argument goes—so there will be newspapers in the spring following the different things happen and cost more, less lung disease. graduation exercises at high schools, because there is a decrease in adver- I wonder, if we go down this path of and we read, with horror, the stories of tising support in free television. That trying to pick out which industries’ de- a few young people who get into an also brings us our weather, our farm ductions for certain kinds of business automobile and wrap that automobile reports, our news, our emergency con- expenses are to be allowed or not al- around a telephone pole and they are ditions. All of these things that are lowed based upon our judgment about all killed or maimed—maimed for life. supported by free over-the-air broad- what is harmful to the public, whether That is what we are talking about. I casts will be impacted if this amend- or not somebody might come in and am not talking about singling out an ment is successful. say, ‘‘Well, we shouldn’t allow produc- industry. I am talking about an indus- The industry has taken steps to limit tion costs associated with the mining try that creates a product that is hurt- or try to curb the abuse that alcohol of coal to be deductible because, after ful—not just hurtful to the person who has on a person or individual. There is all, the burning of coal leads to the pol- uses it, but endangers, as I said al- no doubt about it. And in some areas lution of the air, which then leads to ready, the lives of others. We all know some would say it is even working. lung disease, which then leads to that. I know that all of us want a tax cut. death.’’ But I do appreciate the fact that the All of us want a balanced budget. But I just am concerned that this is a Senator is from Kentucky, and I re- to single out and start limiting an ad step in the wrong direction. I under- spect him for that, and I respect his tax or deductibility for legal products stand fully the concerns of the Senator viewpoint and count him and his fellow is not the right approach. It is not the from West Virginia, and I share them. Kentuckians as good neighbors. right approach—not on a legal product. I think the use of alcohol leads to a I yield the floor. So I urge my colleagues to oppose great deal of tragedy. Mr. ROTH. How much time would the this. It is unwarranted. I think it is un- But I hope we will not single out this Senator from Montana like? wise. And I am not real sure, it might legal industry producing a product, Mr. BURNS. Probably no more than 5 have some constitutional overtones be- which, if properly used, many people in minutes. cause advertising is still freedom of the medical field feel is actually good Mr. ROTH. I yield 5 minutes to the speech. It cannot be treated differently for you, for this kind of selective treat- Senator from Montana. than any other form. ment on deductibility. The PRESIDING OFFICER. The Sen- The Senator from West Virginia Finally, let me say that I am not an ator from Montana. makes a point. It is the abuse of the expert on the budget deal. But it is Mr. BURNS. I thank my friend from product. The advertising has very little clear that there is a lot of momentum Delaware. to do with the abuse of the product. in this body to hold the deal together, Mr. President, no one on this floor Thank you, and I urge the defeat of and this is clearly not part of the budg- makes his case with such passion as this amendment. et deal. my friend from West Virginia. We have I yield the floor. I hope that the proposal will not be a couple of things in common that we Mr. BYRD addressed the Chair. approved, in all due respect to my good will not go into here. But I also know The PRESIDING OFFICER. The Sen- friend and colleague from West Vir- from where he comes. And when you ator from West Virginia. ginia. I hope this would not become start talking about this issue of sin- Mr. BYRD. Mr. President, the Sen- part of the measure before us. gling out something, then we have to ator talks about red meat, eggs, and I yield the floor. look at probably the real facts. sugar. The Honorable Senator is my Mr. BYRD addressed the Chair. First, there is the presumption in friend. Who ever heard of anybody eat- The PRESIDING OFFICER. The Sen- this amendment that somehow the ad- ing red meat, eggs, and sugar, and get- ator from West Virginia. vertising is evil or bad, or that it ting out in the car and having that car Mr. BYRD. Mr. President, may I say wreaks health problems on the Amer- plunge into a tree, weave all across the that I fully understand the economic ican people. There is no question in road, and kill and maim other people? impact of the tobacco industry on the anybody’s mind across this land that Red meat doesn’t cause an individual State of the distinguished Senator who the abuse of alcohol is one of our great- to drive drunk and get in the car and

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00054 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6447 drive all over the highway. Eggs and Mr. ROTH. Mr. President, I yield affirmative, the motion is rejected. sugar don’t do that in their form as back the remainder of my time, and I The point of order is sustained and the eggs and sugar, in their natural form. make the point of order that the pend- amendment falls. The Senator also, I think, made ref- ing amendment is not germane to the Several Senators addressed the erence to the Federal Trade Commis- provisions of the reconciliation meas- Chair. sion in 1985, which found ‘‘no reliable ure and I therefore raise a point of The PRESIDING OFFICER. The Sen- basis to conclude that alcohol adver- order against the amendment under ator from Delaware. tising significantly affects consump- section 305(b)(2) of the Budget Act. Mr. ROTH. Mr. President, I move to tion, let alone abuse.’’ Well, let’s see Mr. BYRD. Mr. President, I move to reconsider the vote. what the conclusions are from the ef- waive the point of order and ask for the Mr. NICKLES. I move to lay that mo- fects of the mass media on the use and yeas and nays on my motion. tion on the table. abuse of alcohol. The PRESIDING OFFICER. Is there a The motion to lay on the table was The National Institute of Alcohol sufficient second? agreed to. Abuse and Alcoholism, U.S. Depart- There is a sufficient second. Several Senators addressed the ment of Health and Human Services, The yeas and nays were ordered. Chair. Research Monograph-28, 1995: The PRESIDING OFFICER. There is The PRESIDING OFFICER. The Sen- [The] preponderance of the evidence indi- an hour equally divided on the motion. ator from Delaware. cates that alcohol advertising stimulates Mr. BYRD. Mr. President, I yield PRIVILEGE OF THE FLOOR higher consumption of alcohol by both back my time. Mr. ROTH. Mr. President, I ask unan- adults and adolescents . . . It appears to be a Mr. ROTH. Mr. President, I yield imous consent that Barbara Angus and contributing factor that increases drinking back the balance of my time. Mel Schwarz of the staff of the Joint to a modest degree rather than being a major VOTE ON MOTION TO WAIVE THE BUDGET ACT Committee on Taxation be granted full determinant. (Dr. Charles Adkins, Depart- floor access during consideration of S. ment of Communications, Michigan State The PRESIDING OFFICER. The University.) question is on agreeing to the motion 949. to waive. The yeas and nays have been The PRESIDING OFFICER. Without Now I shall quote Dr. Sally Casswell, ordered. The clerk will call the roll. objection, it is so ordered. Alcohol and Public Health Research The bill clerk called the roll. Several Senators addressed the chair. Unit, School of Medicine, University of Mr. MCCAIN (when his name was The PRESIDING OFFICER. The Sen- Aukland: called). Present. ator from Delaware has the floor. [T]here is sufficient evidence to say that Mr. NICKLES. I announce that the Mr. MCCAIN. Mr. President, I suggest alcohol advertising is likely to be a contrib- Senator from Kansas [Mr. ROBERTS], is the absence of a quorum. uting factor to overall consumption and necessarily absent. The PRESIDING OFFICER. The Sen- other alcohol-related problems in the long ator from Delaware has the floor. term. The PRESIDING OFFICER. Are there any other Senators in the Chamber POINT OF ORDER—SECTION 602 Now quoting Dr. Joel Grube, Preven- Mr. ROTH. Mr. President, I move to tion Research Center: who desire to vote? The yeas and nays resulted—yeas 12, withdraw the request for a waiver of [A]lcohol advertising can influence chil- nays 86, as follows: the point of order on section 602 of S. dren, particularly their beliefs about alcohol 949. and, indirectly, their intentions to drink as [Rollcall Vote No. 136 Leg.] adults. YEAS—12 The PRESIDING OFFICER. Is there objection? Finally, let me quote Dr. Esther Bumpers Glenn Rockefeller Mr. BOND. Mr. President, reserving Thorson, School of Journalism, Univer- Byrd Hatch Sarbanes Cleland Helms Thurmond the right to object, what is the section? sity of Missouri: DeWine Kennedy Wellstone Mr. KERRY. What is it? Mr. Presi- If research were designed to take account NAYS—86 dent, I suggest the absence of a of what the advertiser is trying to do and if Abraham Faircloth Lieberman quorum. it examined the relationship between the The PRESIDING OFFICER. The Sen- specific structure of the message and the in- Akaka Feingold Lott Allard Feinstein dividual or group for whom that message is Lugar ator from Delaware has the floor. Does Ashcroft Ford Mack targeted, investigators probably would find he yield? Baucus Frist McConnell Mr. BROWNBACK. Will the Senator ‘‘whopping effects’’. Bennett Gorton Mikulski from Delaware explain the section? Mr. President, I appreciate the views Biden Graham Moseley-Braun Bingaman Gramm Mr. ROTH. Mr. President, this was a that have been expressed by my friend Moynihan Bond Grams Murkowski motion to strike section 602, ‘‘Incen- from Montana and, as I have already Boxer Grassley Murray Breaux Gregg tives conditioned on other DC reform.’’ indicated, by my friend from Ken- Nickles Brownback Hagel This part deals with: Reed tucky. I appreciate their views, and I Bryan Harkin Reid Amendments made by section 701 shall not respect their views. Burns Hollings Robb take effect unless an entity known as the Mr. President, I don’t think there Campbell Hutchinson Roth Economic Development Corporation is cre- should be any doubts in the minds of Chafee Hutchison Coats Inhofe Santorum ated by Federal law in 1997 as part of the Dis- any Senator or any person who is view- Cochran Inouye Sessions trict of Columbia government. Shelby ing this Chamber via that electronic Collins Jeffords Senator BROWNBACK made a point of eye that the drinking of alcohol affects Conrad Johnson Smith (NH) Coverdell Kempthorne Smith (OR) order on this matter and I, in turn, the judgment of people, and that there Craig Kerrey Snowe asked for a waiver. We are now asking are many other costs that are not tan- D’Amato Kerry Specter that the waiver be withdrawn, so that Stevens gible, that cannot be translated into Daschle Kohl the point of order will lie. dollars and cents— the cost of lost pro- Dodd Kyl Thomas Domenici Landrieu Thompson The PRESIDING OFFICER. Is there ductivity, the cost of broken homes, Dorgan Lautenberg Torricelli objection to withdrawing the waiver? the cost of children abused. And I could Durbin Leahy Warner Mr. KERRY addressed the Chair. go on. Enzi Levin Wyden Mr. FORD. Mr. President, I suggest I have made my case, and I ask for ANSWERED ‘‘PRESENT’’—1 the absence of a quorum. the yeas and nays on my amendment. McCain The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. Is there a NOT VOTING—1 ator from Delaware does not lose the sufficient second? floor. There is a sufficient second. Roberts Is there objection? The yeas and nays were ordered. The PRESIDING OFFICER. If there Mr. KERRY. Reserving the right to Mr. BYRD. I yield back the balance are no other Senators wishing to vote, object, Mr. President. of my time. the yeas are 12, the nays are 86. One Mr. President, I will not object. The PRESIDING OFFICER. The Sen- Senator responded present. Mr. ROTH. Mr. President, I move to ator from Delaware has the remaining Three-fifths of the Senators duly cho- withdraw my waiver of the point of time. sen and sworn not having voted in the order.

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00055 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6448 CONGRESSIONAL RECORD — SENATE June 26, 1997 The PRESIDING OFFICER. Is there on after you have already put on 20 Several Senators addressed the an objection to moving to withdraw cents. Chair. the waiver. So if you want to change that one, The PRESIDING OFFICER. Who Mr. BROWNBACK. Reserving the that is fine; otherwise, Mr. President, I yields time? right to object, do I understand the will have to object. Mr. DURBIN addressed the Chair. chairman to say now that you are re- Mr. GRAMM. Take it off. The PRESIDING OFFICER. The Sen- moving your waiver to the point of Mr. KERRY addressed the Chair. ator from Illinois. order that I have raised? The PRESIDING OFFICER. The Sen- Mr. DURBIN. I seek recognition on Mr. ROTH. Yes. ator from Massachusetts. this amendment. Mr. BROWNBACK. OK. So the point Mr. ROTH. I yield for a comment. I want to make it clear to my col- of order would lie. Mr. KERRY. Can I suggest, Mr. Presi- leagues, I am more than willing to ac- Mr. ROTH. Correct. dent, the following. We are going to commodate on the remainder of the Mr. BROWNBACK. I thank the Sen- have to resolve that issue. We are obvi- time. As I understand it, there are ator. I just needed that clarification. ously not going to resolve it imme- about 42 minutes left on this amend- Mr. HARKIN addressed the Chair. diately if an objection is going to be ment. I do not need all that time. I am The PRESIDING OFFICER. Without lodged. more than happy to reduce it equally objection, it is so ordered. So I recommend that we put in line on both sides and allocate the remain- Is the Senator reserving the right to reserving the time that the Senator ing time on this amendment, any time object? has agreed to already cut it down to, in left before the Senate, among the Mr. ROTH. Mr. President, I make a the event we reach some agreement Members. And I hope that there is no point of order that a quorum is not that it will be able to be debated, ab- objection to that. But if there is such present. sent that, that we set it aside tempo- an objection, I have no other recourse The PRESIDING OFFICER. Is there rarily with the understanding we take but to proceed on this amendment. And objection? the order as you have described it. I now have the floor. Without objection, it is so ordered. Again, let me just ask, if I could, Mr. I yield for the purpose of a question The point of order is withdrawn. President, how much time remains for to the Senator from Oklahoma. The motion to waive the Budget Act each side so we know we are dividing Mr. NICKLES. Will the Senator was withdrawn. this properly? yield, not for the purpose of a question, Mr. DURBIN addressed the Chair. The PRESIDING OFFICER. The Sen- but maybe for a suggestion? Mr. ROTH. Mr. President, please. ator from Illinois has 43 minutes on his Mr. DURBIN. Yes. The PRESIDING OFFICER. The Sen- amendment. Mr. NICKLES. That we go ahead and ator from Delaware. Mr. KERRY. I am referring to both debate the Senator’s amendment until Mr. ROTH. I make a point of order a sides total on the bill. he is satisfied with it, his cosponsors quorum is not present. The PRESIDING OFFICER. The ma- are satisfied with it, and then maybe at The PRESIDING OFFICER. The jority has 1 hour and 35 minutes; the that time you can set it aside, and we clerk will call the roll. minority has 1 hour and 18 minutes. will go ahead and vote on the other The assistant legislative clerk pro- Mr. KERRY. Mr. President, I ask amendments, and you then have had ceeded to call the roll. then unanimous consent that added to your debate, and we will have a vote on Mr. DORGAN. Mr. President, I ask that list, for the minority side, the yours somewhere in the pecking order. unanimous consent that the order for order be as follows: Senator DODD, Sen- Mr. DURBIN. I thank the Senator. the quorum call be rescinded. ator LANDRIEU, Senator TORRICELLI, It is the only way I can proceed at Mr. KERRY. I object. Senator HARKIN, Senator LEVIN, Sen- this point since there is no unanimous The PRESIDING OFFICER. Objec- ator BINGAMAN, Senator WELLSTONE, consent that is going to be agreed to. tion is heard. and Senator KOHL, each of them to Mr. KERRY. Mr. President, if the The assistant legislative clerk con- have 10 minutes on our side. Senator would yield for a moment. tinued with the call of the roll. Mr. FORD. Mr. President, reserving Mr. DURBIN. I yield to the Senator Mr. ROTH. Mr. President, I ask unan- the right to object. Reserving the right from Massachusetts for a question. imous consent that the order for the to object. The PRESIDING OFFICER. The Sen- quorum call be rescinded. Mr. ROTH. Mr. President, it is obvi- ator from Massachusetts. The PRESIDING OFFICER. Without ous we are not close to unanimous con- Mr. KERRY. I believe the Senator objection, it is so ordered. sent as to how to proceed, so I think we from Kentucky will agree to a time. I Mr. ROTH. Mr. President, I ask unan- will just have to go to regular order believe the Senator would agree to a imous consent that the following Sen- and call upon Senator DURBIN to bring time. And I think, in fairness to all the ators, in the order listed, be able to up his amendment. other Senators, that if we could try to bring up their amendments, the time Mr. DURBIN addressed the Chair. establish some kind of order, I think for each of the amendments be listed The PRESIDING OFFICER. Does the that everybody will benefit that much and divided equally between the two Senator from Delaware withdraw his more. I think we were very close to sides. The first would be Senator DUR- request? having that arranged, if the Senator BIN for 20 minutes, to be equally di- Several Senators addressed the from Oklahoma would just forbear for vided; Senator NICKLES 10 minutes, to Chair. a moment. be equally divided; Senator GRAMM 20 The PRESIDING OFFICER. The Sen- Mr. ROTH. What is the order, Mr. minutes to be equally divided; Senator ator from Oklahoma. President? KERRY of Massachusetts 20 minutes Mr. NICKLES. Mr. President, I send The PRESIDING OFFICER. The Sen- equally divided, and—— an amendment to the desk and ask for ator from Illinois has the floor. Mr. FORD. Reserving the right to ob- its immediate consideration. Mr. DURBIN. Mr. President, I can ject, Mr. President. Reserving the right Mr. DURBIN. Mr. President, what is proceed on this amendment. And if to object. the pending business before the Sen- Members can work out some accommo- You have in there Senator DURBIN’s ate? dation, I will do my best to abbreviate amendment for, what, 20 minutes The PRESIDING OFFICER. The this debate and give everyone a chance, equally divided? pending question is the amendment of because I know many people waited. Mr. ROTH. That is correct. the Senator from Illinois. Mr. President, this— Mr. FORD. Mr. President, I want to Mr. DURBIN. I seek the regular Mr. KERRY. Would the Senator yield object to that one. And you can jerk it order. for a question? out if you want to, because you have The PRESIDING OFFICER. The Sen- Mr. DURBIN. Yes. rolled over the tobacco industry and ator from Illinois and the Senator from Mr. KERRY. Can we get a sense for my farmers long enough. And I don’t Delaware control the time. what the Senator from Illinois means intend to sit here without a fight for The PRESIDING OFFICER. Who about abbreviating this? Is there some the additional 11 cents you want to put yields time? period of time?

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00056 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6449 Mr. DURBIN. Yes. The Senator is when the 10 hours expires today, to go Mr. DURBIN. Thank you, Mr. Presi- going to try to do it in the 20 minutes out until tomorrow morning, at which dent. that was in the UC request, allocating time the amendments can be offered AMENDMENT NO. 519 an equal amount of time to the Sen- and voted upon. Mr. DURBIN. Mr. President, this ator from Missouri. Mr. DORGAN. Further reserving the amendment was offered last night. It is Mr. KERRY. Mr. President, if the right to object, is the intent of the an amendment which I think most Senator will yield just for the purposes chairman to have the additional re- Members are conversant with because of asking something. corded votes, for example on the DUR- it is not a new issue. This is an issue Mr. DURBIN. Yes. BIN amendment? which has been literally before Con- Mr. KERRY. Will the Senator from Mr. ROTH. It is unclear at this time. Kentucky agree to a 20-minute time pe- gress for almost 50 years. I urge that we proceed, let the debate It is an issue of rank discrimination. riod on the Senator from Illinois’ proceed, and we can work out the other amendment? It is an issue of unfairness. It is an details forthwith. issue of inequality. And it goes to the Mr. FORD. Mr. President, since it I move the adoption of my unani- has been laid on me—and I do not mind heart of protecting American families. mous consent request. The issue at hand is the deductibility that at all. I have always heard when Mr. KENNEDY. Reserving the right of health insurance premiums. you tear the hide off it comes back— to object. Those Americans fortunate enough you are tougher. And I will agree to Mr. President, like many others here, to work for corporations, employees the 20 minutes. I do not want to, but I I would like to just be able to get a and management, enjoy a 100 percent will agree to it. short period of time. To be able to get deductibility of all health insurance All I hear for the last week is bang- on the early part of that queue, I would premiums. I think that is good policy. ing my State and my farmers and my be glad. But I have an amendment with It encourages health insurance protec- tobacco. And I think I ought to have an regard to tobacco tax. So I wanted to tion. It protects families. opportunity to defend myself and my just make sure that we are going to If you happen to be one of the 23 mil- people. If I am going to be limited to 10 even be able to discuss this or at least lion Americans who are self-employed minutes, you know, I am not sure that have some idea where we are to have and you buy health insurance for your my colleague and I, with 5 minutes that, too. family, your tax deductibility is 40 per- each, can do it adequately. We can do Mr. ROTH. Mr. President, in order to cent. What does that mean? It means, as well as anybody else in 5 minutes. get things moving, let us proceed. Reg- unfortunately, a higher percentage of But I hope they would give some con- ular order. I urge Senator DURBIN to sideration to it. proceed to debate his amendment, and self-employed people and their families Mr. President, I will agree to the 20 we can try to work out things. are uninsured. It means that the chil- minutes equally divided, since I have Mr. KERRY. Mr. President, if I could dren, of course, of these self-employed used 5. just answer my senior colleague. do not have health insurance protec- Mr. KERRY. I thank the Senator. The PRESIDING OFFICER. The Sen- tion, and it basically means a discrimi- Mr. DURBIN. I want to make certain, ator from Illinois has the floor. nation in our Tax Code which should Mr. President, that I understand. Is Mr. DURBIN. I am going to proceed. have been removed long ago. this time being taken from the time al- I hope that my colleagues will meet There are those who have argued for located on my position on the amend- and discuss UC’s, and Senator BOND gradualism. Let us very, very slowly, ment? in a glacial-like pace reach the day The PRESIDING OFFICER. Time is and I would like to explain an impor- tant amendment. when we have equality and parity, 100 being charged to the Senator from Illi- percent deduction for all Americans. nois. Mr. FORD. Are we on 20? Mr. DURBIN. I do not think we have I am happy to be joined by my col- Mr. DURBIN. I hope we can reach league from Missouri, Senator KIT agreement quickly then. And I yield any agreement at this moment. Mr. KERRY. Would the Senator yield BOND, and also my other colleagues for the purpose of a question to the who have said that they think as I do, Senator from Delaware. I believe the for one moment? I think we can get this locked in place. that it is time for us to end this in- chairman has a suggestion. equality and to give real parity and Mr. ROTH. I suggest that we proceed Mr. DURBIN. I yield only for a ques- tion. fairness so that both the self-employed with my proposal, Senator DURBIN hav- and those working for other businesses ing 20 minutes equally divided; Senator Mr. KERRY. Mr. President, will the Senator permit the Chair to hopefully have the same opportunity for 100 per- NICKLES 10 minutes divided; Senator cent tax deduction. GRAMM 20 minutes divided; and then rule on the unanimous-consent request I ask unanimous consent Senators Senator KERRY of Massachusetts 20 that was proposed, during which time BOND, DORGAN DASCHLE, HARKIN, minutes divided. we will have whatever Democrat time, BOXER, MIKULSKI and JOHNSON be added Mr. DORGAN. Reserving the right to whatever time on this side of the aisle as cosponsors of my amendment No. object, Mr. President. that remains, divided equally among The PRESIDING OFFICER. The Sen- everybody who has an amendment so 519. ator from North Dakota. that no Senator’s preference goes over The PRESIDING OFFICER. Without Mr. DORGAN. Reserving the right to another, just divide it equally? objection, it is so ordered. object, and I will not object, but I do Mr. DURBIN. I say to my colleague Mr. DURBIN. Let me say at this want at this point to try to understand from Massachusetts, I would be happy point, too, it is easy to come before the circumstances. to do that, so long as I do not yield my this body and to propose new tax bene- When the time has expired on this right to the floor in the process. fits. We know the difficult part, the off- bill—that will occur I guess in an hour Mr. ROTH. Mr. President, I move the sets—how do you pay for them? and a half or 2 hours, less than 2 adoption of my unanimous consent. I have come up with a means of pay- hours—I am wondering what the inten- Mr. KENNEDY. Mr. President, how ing for this which I think you can de- tions of the chairman and the ranking much time would remain at the end? I tect has some controversy attached to member are with respect to further am glad to divide it all up with my col- it, but I think it is reasonable. It would proceedings on the bill. league, but how much time remains? impose an additional 11-cent-per-pack- Will we cast record votes this Mr. ROTH. Mr. President, I have been age tax on cigarettes sold in America evening, for example, on the DURBIN going around in a circle about 10 times and a parallel percentage increase on amendment? How many additional now. I think the best thing to do is to spit tobacco and snuff. record votes this evening? How long let the Senator from Illinois proceed Now, the bill proposed by the Senate will we be in session this evening? And with the debate of his amendment, and Finance Committee already raised the when do we intend to begin tomorrow, we can try to work out further agree- Federal tax on tobacco and cigarettes, and with how many amendments? ments subsequently. for example, from 24 cents to 44 cents. Mr. ROTH. It is the intent, I say to The PRESIDING OFFICER. The Sen- This bill would add an additional 11 the Senator from North Dakota, that ator from Illinois has the floor. cents. Make no mistake, it is a tax. For

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00057 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6450 CONGRESSIONAL RECORD — SENATE June 26, 1997 those who have told me, as I have spo- teenagers smoke cigarettes and an- see that the 5.1 million self-employed ken to them, ‘‘Oh, I never vote to in- other million use smokeless tobacco. individuals in the country today have crease the tax,’’ I remind you if you are Every 30 seconds in America a child health insurance and the 1.3 million voting for the Senate Finance Com- smokes for the first time—3,000 a day— children who do not have health insur- mittee bill, you are voting for an in- and a third of them—1,000—will die ance and who live in a family headed crease in this very same tax. with this addiction to nicotine. And by an entrepreneur, a self-employed I ask you to consider whether or not teenage smoking has risen by nearly 50 business owner. it is worth 11 cents on a package of percent since 1991. This, to me, is not only an inequity, cigarettes to extend this kind of pro- So I say to my colleagues, I think but it is a very bad policy outcome. We tection to over 20 million Americans. I this is a balanced approach. It helps are talking about the health of chil- think it is. I hope you will agree with those who truly deserve it. It says to dren. One of the best things we can do me. the tobacco industry, we will make is provide 100 percent deductibility. If we do not make this move this your product a little more expensive Mr. President, the reason I am here evening, if we do not finally grasp this and take it out of the hands of chil- joining with my colleague from Illi- opportunity, seize this opportunity and dren. This is a reality. If you look at nois, we have pointed out in this tax increase the deductibility of this the State taxes around the United relief bill, this tax reduction bill that health insurance for self-employed, States, some of them range as high as is before the Senate now, with $85 bil- they will languish for 8, 9, or 10 years $1 a package and they are going up. lion in taxes, we have pointed out that before ever approximating or reaching The States understand this is a source this is one of the top priorities of small parity. That is not fair. It is not fair to of revenue which is a reasonable source business and of farmers, of the strug- the self-employed. It is not fair to the to turn to for legitimate reasons. We gling working middle class of America. Americans who are disadvantaged by should turn to the source of revenue, Before the debate began, I circulated this provision in the Tax Code. turn to it this evening. a letter signed by 52 of my colleagues, I might also add that many of my I yield for purposes of debate, but do in addition, saying that this was im- colleagues are interested in small busi- not yield the floor, to my colleague portant. Unfortunately, the three top ness. They believe, as I do that small from Missouri, Senator BOND. small business priorities were ex- business is the real engine of economic The PRESIDING OFFICER. The cluded—the self-employed tax deduc- growth in this country. One of the larg- Chair recognizes the Senator from Mis- tion for health care, the home office est associations of small businesses is souri. business deduction, and the inde- the National Federation of Independent How much time is yielded? pendent contractor. This measure, un- Mr. DURBIN. Five minutes. fortunately, is not in either the House Businesses, over 600,000 businesses. Mr. BOND. Mr. President, I thank my When they surveyed their members na- or the Senate bill. We feel it is vitally distinguished colleague and neighbor important to put it there. I congratu- tionwide, they learned last year that from Illinois. I commend him for his the No. 1 issue—the No. 1 issue—on the late my colleague from Illinois in perseverance in being able to hold on choosing the tobacco tax. Tobacco minds of their members was the de- to the floor. These are very difficult ductibility of health insurance. Busi- taxes are being raised in this bill. times and this is a very important There is no more important place to ness Week magazine recently noted amendment. I congratulate him on that this was one of the two top obsta- put those taxes than this, guaranteeing staying with it so we can bring this up health for self-employed and their chil- cles to success for many small busi- and debate it while we have the atten- dren. nesses. So if you want to encourage tion of this body. In addition to the figures that my small business and the creation of jobs, I believe my experience in the State colleague from Illinois stated, about I urge you to support this amendment. of Missouri is probably like the experi- 3,000 children becoming regular smok- Let me speak for a moment about ence that most of us have had in our ers every day, last week when Senator this tobacco tax. I know that my col- own States. As we travel around and BUMPERS and I introduced a measure to league and friend from the State of talk to farmers, to people involved in encourage pregnant women to stop Kentucky feels very passionately about small business, to truck drivers, day smoking, I pointed out that while to- this issue. I might tell him that I do as care operators, people who work for bacco use among most pregnant women well. I will tell you what will occur if themselves, they ask an unanswerable is declining, tobacco usage among you increase the cost of tobacco prod- question: Why is it that I can only de- teenage pregnant women is on the in- ucts. Children will be less inclined to duct, now, 40 percent of what I pay in crease. In my State it is 50 percent buy them. As these products become health insurance premiums for myself above the national average, and not more expensive, children cannot afford and my family when my neighbor next surprisingly our birth-defect rate is 50 them. It is a fact that has been proven door who works for a large corporation, percent above the nationwide average. over and again. It was recently shown or in the country when my neighbor This will have an impact on discour- just a few years ago in Canada when next door who works for a large cor- aging teenagers from starting to they had a dramatic increase in their porate farm gets his or her health care smoke. It will help encourage pregnant tobacco tax. So we know that by in- paid and the employer deducts 100-per- women, particularly pregnant teen- creasing this tax by 11 cents, we end up cent of what they pay and they do not agers, to stop smoking. making over 20 million Americans who have to include any of the health insur- Mr. President, this is an important are self-employed, give them a position ance on their income tax? Why does matter of equity. It is a matter of of fairness when it comes to tax treat- the self-employed person only get to health care policy. I urge my col- ment, and we reduce the likelihood deduct 40 percent? leagues to support what I know will be that children will end up using these Frankly, there is no answer, Mr. a required budget waiver so that this tobacco products. President. There is a gross inequity in could be included. Now I know there will be a lot said this system. It is an inequity that has Before I yield the floor, I ask unani- about tobacco farmers in opposition to been pointed out by every farm organi- mous consent to have printed in the my amendment. I want to make this a zation in my State time and time RECORD the letter of June 26 from the matter of record. I have said from the again. It has been pointed out by orga- vice president for Federal Government beginning I am prepared to work with nizations representing small business. relations of NFIB, Dan Danner, saying, those Members who want to help tran- At the conclusion of my remarks, I ‘‘The self-employed have an extremely sition tobacco farmers into other crops will enter in the RECORD a letter from difficult time purchasing health insur- and other livelihoods. I believe that is the NFIB of June 26 expressing their ance. This is why 3 million self-em- the wave of the future and it should be strong support for the 100-percent de- ployed business owners have no health part of any comprehensive change in ductibility for the amounts paid for insurance, nor do 1.3 million of their tobacco policy. health insurance for self-employed children.’’ I will conclude and then defer to my business owners. There being no objection, the mate- colleague from Missouri. An estimated This is a matter of equity. This is a rial was ordered to be printed in the 41⁄2 million American children and matter that is absolutely essential to RECORD, as follows:

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00058 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6451 NATIONAL FEDERATION OF You know, Mr. President, this has hopes to bring in over five years will be paid INDEPENDENT BUSINESS, been an interesting week. We had a ne- by those earning less than $15,000 a year (see June 26, 1997. gotiation with the attorneys general Chart 1). Another 25 percent of the total rev- Hon. CHRISTOPHER BOND, around the country, and the tobacco enues will be paid by Americans earning be- U.S. Senate, Washington, DC. tween $15,000 and $30,000. In all, those earn- DEAR SENATOR BOND: On behalf of the industry is stuck for almost $370 bil- ing $30,000 or less would foot about 60 percent 600,000 members of the National Federation lion. The price of cigarettes go up. How of the total bill for the new tax. of Independent Business, I am writing to ex- much more do you want? And then the press our strong support for 100% deduct- Finance Committee puts on 20 cents CHART 1: NEW COLLECTIONS BY INCOME GROUP BASED ibility of the amounts paid for health insur- more, and that raises the price of ciga- ON FINANCE COMMITTEE’S 20¢ CIGARETTE EXCISE HIKE ance for self-employed business owners. The CEOs of large corporations can deduct rettes and smokeless tobacco. And now we want to put on 11 cents more. Why? 5-year Share of 100 percent of their health care costs, while Adjusted gross income total tax bur- the self-employed can only currently deduct To help the small businessman get a (millions) den (per- 40 percent of their health care costs. This is deductible on his health insurance? cent) simply not fair. The Kassebaum/Kennedy At the same time, you are putting under $15,000 ...... $5,098.2 34.0 health care law was a good first step, but 65,000 farm families out of work in my $15,000 under $30,000 ...... 3,819.9 25.5 still does not give the self-employed the fair- $30,000 under $45,000 ...... 2,315.2 15.4 State. You say you are going to help. $45,000 under $60,000 ...... 1,318.8 8.8 ness they deserve in that the law only allows You may never get the bill to help. I $60,000 under $75,000 ...... 911.6 6.1 the self-employed to deduct 80 percent of $75,000 under $115,000 ...... 982.5 6.6 their health care costs by the year 2006. think it is time to stop it. It is time we $115,000 under $300,000 ...... 474.2 3.2 The self-employed have an extremely dif- quit. My farmers have to survive. And $300,000 and over ...... 80.0 0.5 ficult time purchasing health insurance. we hear all the States have an excise Total ...... 15,000.0 100.0 This is why 3 million self-employed business tax. Well, we had a good many here in Source: Tax Foundation estimates based on data from IRS, Bureau of the owners currently have no health insurance, the past that would vote against any Census, and Center for Disease Control. nor do 1.3 million of their children. Full de- excise tax because they thought it all ductibility will help make health insurance Juxtaposed to this, those earning $115,000 more affordable for these small business should go to the States. It is their pre- or more will account for less than four per- owners. Therefore, the self-employed need rogative. But when you add 20 cents cent of the additional tax revenues. full deductibility now. onto the State, and you add another 11 ‘‘Whether the Finance Committee recog- Sincerely, cents onto the State, then you add 75 nizes it or not, the proposed tax will really DAN DANNER, cents on, if you get the negotiated make a dent in the budgets of America’s Vice President, agreement out there, the income to the lower-income households,’’ Mr. Fleenor stat- Federal Governmental Relations. ed. community and to the Federal Govern- In a state by state comparison, California Mr. BOND. I yield the floor. ment are going to go straight down. will bear the single largest burden if the new Mr. NICKLES. Mr. President, would They are playing with funny money, tax is enacted, paying $1.16 billion to the the Senator from Delaware give me 4 because the more you increase it, the U.S. Treasury over five years (see Chart 2). minutes? less income you are going to have. The 10 states with the highest projected tax Mr. ROTH. I yield 4 minutes to the When you increase the tax, the less in- payments will pay 50 percent of the overall Senator from Oklahoma. come you are going to have. So now tax increase, according to Mr. Fleenor’s cal- Mr. NICKLES. Mr. President, one, I culations (see Chart 3). you say you have all this income com- want to ask my colleagues to vote no ing in—you are playing with funny Chart 2: New collections by State based on Fi- on the Durbin-Bond amendment and nance Committee’s 20¢ cigarette excise hike, 5- tell them I think I have a pretty good money. One other point, Mr. President. You year total record—I heard the support of NFIB for talk about low income—59.5 percent of [Share of tax burden; in millions of dollars] deductibility for the self-employed. I this tax will come out of those who Alabama ...... $278.1 used to be self-employed, so I support make less than $30,000 a year—$30,000 a Alaska ...... 35.0 that. year—and 34 percent of the money the Arizona ...... 200.0 For my colleagues’ information, I Arkansas ...... 177.7 will be offering an amendment after Senator from Illinois and the Senator California ...... 1,155.5 the Durbin amendment, very soon, that from Missouri want will come from Colorado ...... 199.2 will accelerate and allow self-employed those that make less than $15,000. Talk Connecticut ...... 167.5 people to deduct a greater percentage about the little man—you are talking Delaware ...... 57.7 Florida ...... 852.0 for their health insurance at a much away from the man that makes $15,000 and a man with a family that makes Georgia ...... 452.2 faster rate than now is under existing Hawaii ...... 34.9 law. It does not go to 100 percent, but less than $30,000. You are going to take Idaho ...... 56.3 likewise we do not increase taxes an- 60, 65 percent of that money from that Illinois ...... 638.8 other 10 cents, which I think a lot of group. What do they benefit? You put Indiana ...... 501.8 people, not just from tobacco States, them out of business. Iowa ...... 169.4 are saying ‘‘Wait, we are already in- I ask unanimous consent to have Kansas ...... 148.0 Kentucky ...... 429.5 creasing it 20 cents, almost doubling printed in the RECORD the Tax Founda- tion’s analysis on where the cigarette Louisiana ...... 293.7 the tax, should we do another 10 Maine ...... 81.8 cents?’’ tax and smokeless tax would come Maryland ...... 251.2 I might mention the Finance Com- from and how many States would lose Massachusetts ...... 299.7 mittee said we would stop at 20 cents. what money, and how many individuals Michigan ...... 507.3 I do not think the Durbin amendment of what financial income category Minnesota ...... 246.5 will become law. I want to let my col- would have to pay for this. Mississippi ...... 183.3 leagues know we will offer an amend- There being no objection, the mate- Missouri ...... 420.7 rial was ordered to be printed in the Montana ...... 48.8 ment that will accelerate deductibility Nebraska ...... 92.1 RECORD, as follows: for the self-employed. We will be offer- Nevada ...... 92.1 ing that subsequent to this so they can BOTTOM LINE ON FINANCE COMMITTEE’S PRO- New Hampshire ...... 115.6 vote no on the Durbin amendment, POSED 20¢ CIGARETTE EXCISE HIKE: BOTTOM New Jersey ...... 413.1 vote yes on the amendment that Sen- INCOME EARNERS WOULD PICK UP MOST OF New Mexico ...... 70.2 ator HAGEL and I will be introducing THE TAB New York ...... 829.5 momentarily that will give the self- WASHINGTON, D.C., JUNE 20, 1997.—The Sen- North Carolina ...... 563.5 employed a greater benefit for deduct- ate Finance Committee’ proposed 20¢ per North Dakota ...... 33.0 Ohio ...... 801.8 ing their insurance. pack addition to the current 24¢ federal ciga- rette excise could play havoc with lower-in- Oklahoma ...... 229.0 I yield the floor. come Americans’ pocketbooks, according to Oregon ...... 186.8 Mr. ROTH. I am pleased to yield 5 an analysis by the Tax Foundation. Pennsylvania ...... 743.4 minutes to the Senator. Tax Foundation Economist Patrick Rhode Island ...... 59.1 Mr. FORD. My other colleague will Fleenor says that, judging by historic ciga- South Carolina ...... 258.1 need some time, too. I thank the chair- rette consumptions patterns, over a third of South Dakota ...... 45.7 man. the $15 billion that the Finance Committee Tennessee ...... 413.7

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00059 Fmt 0624 Sfmt 0655 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6452 CONGRESSIONAL RECORD — SENATE June 26, 1997 Chart 2: New collections by State based on Fi- In ‘‘The Use and Abuse of Excise Taxes,’’ less income next year. You are going to nance Committee’s 20¢ cigarette excise hike, 5- Dr. Dwight R. Lee, of the University of Geor- have less next year. Substitute another year total—Continued gia, examined the inefficiencies of the excise crop. That indicates that you don’t Texas ...... 880.9 tax. While he acknowledged that inefficien- know what tobacco brings, you don’t cies are inherent in any taxation, because Utah ...... 62.9 know what corn brings, or what soy- Vermont ...... 46.0 taxes distort the economic choices that peo- Virginia ...... 448.9 ple make, Dr. Lee observed that the most ef- beans brings—$1,844 net profit for an Washington ...... 229.7 ficient tax system minimizes this type of acre of tobacco, and $100 from soy- West Virginia ...... 135.8 distortion. beans. You have to plant acres and Wisconsin ...... 306.5 Excise taxes, however, are conspicuously acres and acres of soybeans and one Wyoming ...... 34.7 at odds with the goal of reducing tax distor- acre of tobacco. District of Columbia ...... 21.5 tions, says Dr. Lee. They are the most dis- The PRESIDING OFFICER. The time Source: Tax Foundation estimates based on data torting of all taxes per dollar raised. Instead from IRS, Bureau of the Census, and Centers for Dis- of spreading the tax burden as neutrally as of the Senator has expired. ease Control. possible over a broad tax base, excise taxes Mr. FORD. I suppose it’s time. I was Chart 3: Top Ten State Contributors to Senate single out a few products for a high and dis- sweating anyhow. Finance Committee’s 20¢ Cigarette Excise Hike criminatory tax burden. While obviously un- Mr. ROTH. Mr. President, I yield 5 1. California ...... $1,155.5 fair to the consumers of the taxed product, minutes to the Senator from Ken- imposing or increasing excise taxes to fund 2. Texas ...... 880.9 tucky, [Mr. MCCONNELL]. tax relief for other taxpayers only exacer- 3. Florida ...... 852.0 Mr. MCCONNELL. Mr. President, if I 4. New York ...... 829.5 bates the problem. 5. Ohio ...... 801.8 Excise taxes are sometimes proposed to were a Senator from any other State 6. Pennsylvania ...... 743.4 fund specific government spending programs, listening to this debate, I guess I would 7. Illinois ...... 638.8 called ‘‘earmarking.’’ Only in a very few sit- have to conclude that I don’t have any 8. North Carolina ...... 563.5 uations—where the consumption of a product tobacco growers. Cigarette smoking is 9. Michigan ...... 507.3 is complementary to the use of some other obviously not good for your health. 10. Indiana ...... 501.8 good that cannot easily be priced directly— Why should I not vote for the Durbin- can earmarked excise taxes be efficient. But Total ...... 7,474.5 even here the efficiency of the excise tax de- Bond amendment? Source: Tax Foundation estimates based on data pends upon the revenues being uncondition- Reason No. 1: We entered into a budg- from IRS, Bureau of the Census, and Centers for Dis- ally allocated to the complementary use to et agreement and this breaks it wide ease Control. reduce the cost of rent seeking. The greater open. There has been a lot of momen- ‘‘What’s ironic about this tax,’’ noted Tax the rent seeking over the allocation of the Foundation Executive Director J.D. Foster, tum in this Chamber over the last revenues from a potentially efficient excise ‘‘is that, with over half of it earmarked for week to stick to the budget agreement. tax, the less efficient it is and the lower the healthcare costs for poor children, it This is a deal breaker. It wasn’t nego- efficient rate of taxation (under reasonable amounts to a case of the poor paying for new tiated by the President and the leaders assumptions about the relevant elasticity of programs for the poor.’’ demand). of the Republican Congress. It wasn’t Mr. FORD. Mr. President, let’s be even voted on by the Senate Finance NEW TAX FOUNDATION ANALYSES QUESTION Committee. ROLE OF EXCISE TAXES IN SOUND FEDERAL fair. We had a negotiated agreement. It AND STATE TAX POLICY wasn’t good enough. That may be the So the stake you have in this, I say to my colleagues, you will be voting to WASHINGTON, D.C., JUNE 20, 1997.—Do excise floor. So here we come with 20 cents taxes represent good or bad tax policy? The more, and then 11 cents more. I have bust the budget deal wide open, in Tax Foundation recently published the first 65,000 farm families that this legisla- order to raise taxes on low-income two in a series of five Background Papers fo- tion will put out of business. Oh, we are Americans. What a great idea. This is cusing on this and other questions relating going to take care of them. Well, you supposed to be a package about low- to the role excise taxes play in our economy. take care of them, then I will talk ering taxes by $85 billion, or close In ‘‘Excise Taxes and Sound Tax Policy,’’ about taxes. You take care of my farm- thereto, over the next 5 years, and a Dr. John R. McGowan, Associate Professor of vote for the Durbin-Bond amendment Accounting at Saint Louis University’s ers and I will talk about taxes after School of Business, provides an overview of that. I will talk about how much you turns it into a tax increase bill—a tax how and why the federal excise system get from the tobacco industry. I will increase bill on the lowest income peo- evolved. talk about how much you are going to ple in America. In fact, 60 percent of Excise taxes have always played a large do for this group or that group. So take any tobacco tax increase will be borne role in the federal government’s revenue col- care of my farmers, take care of my by Americans making less than $30,000 lections, forming the bulk of total revenues people. I have stood by and watched a year. So you will be transforming in the early years of the republic. this bill, which has been criticized by While excise taxes constitute under five these people be run over long enough. percent of total revenues today, the federal Oh, you can come out here with croco- some downtown as somehow a benefit government still imposes excises on a wide dile tears. I can tell you all the sad sto- for the wealthy, into a major tax in- variety of goods and services, including gaso- ries. But small businessmen are small crease on the most vulnerable, low-in- line and diesel fuel, tobacco and alcohol businessmen, and a small farmer is come people in our society. products, airline tickets, firearm sales and still a small farmer. And 69 percent of Regardless of how you feel about to- firearm dealers, heavy trucks and trailers, my farmers have another job. It be- bacco, regardless about how you feel large tires, coal, vaccines, fishing equip- about smoking—I don’t smoke and ment, and even bows and arrows. Federal ex- comes a husband, wife, and family oc- cise receipts recently approached $60 billion. cupation. You want to put them out of don’t support it particularly; I think it Today, about 70 percent of excise revenues work. is not good for you—it is a legal prod- come from the taxes on alcohol, tobacco, and I understand smoking. I have been uct. That isn’t the issue here. Why in gasoline and diesel fuel, says Dr. McGowan. smoking for 54 years and I am still the world, in a bill designed to lower The accompanying charts shows that federal here, thank God. I understand smok- taxes, would we want to have a whop- excises on distilled spirits, beer, and wine, ing. My grandchildren don’t smoke, ping tax increase on the lowest income raised about $7.2 billion in 1995, while the to- and I understand all of that. But then, people in America? bacco excise raised about $5.9 billion, and gasoline and diesel fuel taxes raised over a while ago, we didn’t put a little de- My good friend from Missouri said it $22.6 billion. ductible, or eliminate the deductible is a matter of equity. It sure is. What Dr. McGowan concludes that while excise on the distilled spirits industry—beer, is equitable about it? We are singling taxes are relatively easy for governments to wine, and distilled spirits. Here we out one industry and one socio- impose, they generally do not represent have tobacco and you pile on and pile economic group in America for a major sound tax policy. Excise taxes can introduce on and pile on. tax increase in a bill designed to lower significant amounts of inefficiencies into the Mr. President, I hope my colleagues taxes on working American families. It economic marketplace and create a net re- will do the best they can to help in this absolutely distorts everything this tax duction of benefits for consumers. Most sig- nificantly, excise taxes are widely believed case. It is an additional tax. It is put- reduction bill is supposed to be about. to be regressive and therefore contrary to ting my people out of work. It is saying Obviously, it has an impact on my long-held concepts of fairness in the United to children on the farm—children on State. Senator FORD and I feel passion- States tax system. the farm—that you are going to have ately about this. Maybe some product

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00060 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6453 in your State will be next. But this The PRESIDING OFFICER. Who ness owners, particularly women, and transforms this bill into a major tax yields time? farmers have access to the same tax de- increase on low-income Americans. I Mr. ROTH. Mr. President, I yield 5 ductions that are available to large can’t think of a worse direction to go minutes to the distinguished Senator corporations. I do not, however, agree in. from North Carolina, Mr. HELMS. with the way my Illinois colleague has Finally, let me say that it is esti- The PRESIDING OFFICER. The Sen- suggested we pay for this particular in- mated that it will cost our State of ator from North Carolina, Mr. HELMS, crease, and for that reason, I cannot Kentucky 2,700 jobs, just like that. is recognized. support this amendment. Clearly, that is a matter of major con- Mr. HELMS. Mr. President, we have The bill before us today reflects a cern to us. But the consumers of ciga- taken on the air of a Gilbert and Sul- long and tedious, bipartisan com- rettes are all over America, not just in livan comic opera here tonight and all promise among the members of the Fi- Kentucky, not just in North Carolina. this week. I heard on the radio, I say to nance Committee. That compromise, They are, by and large, lower income my colleague from North Carolina, on which provides for increased access to people, who will continue to smoke the early morning news, several days education, increased savings incen- after that, and you have just socked ago, I heard a Senator say, ‘‘Yes, we tives, family tax relief, and agricul- them with a major tax increase, Mr. are going to give umpteen hundred mil- tural and business investment incen- President. lion dollars to children’’—he didn’t say tives, also reflects some hard choices I certainly hope my colleagues will children, he said ‘‘chillin,’’ and, oh, regarding upon whom the burden to not, A, break the budget deal and, B, how benevolent he was—‘‘because we pay for such benefits should fall. A part have a whopping tax increase on low- are going to raise the cigarette tax,’’ of the compromise made by the mem- income Americans. we are going to sock the tobacco com- bers of the Finance Committee was the I yield the floor. panies. Well, he is not going to do any decision to forgo increasing tobacco The PRESIDING OFFICER. Who such thing. But that is what he wants taxes at the present time. This decision yields time? the folks back home to think. was made with due consideration to Mr. ROTH. Mr. President, I yield 5 Speaker after speaker has pointed the ongoing tobacco litigation, which minutes to the Senator from North out that you are not taxing the tobacco may result in a dramatic increase in Carolina. companies; you are taxing the lower in- current tobacco taxes. The PRESIDING OFFICER. The Sen- come people of this population of the I definitely support the spirit of Sen- ator from North Carolina is recognized United States. If you don’t believe it, ator DURBIN’s amendment. A 100 per- for 5 minutes. look at the record. Yet, they say, we cent deduction for health insurance Mr. FAIRCLOTH. Mr. President, I are socking it to the tobacco compa- premiums could reduce the annual net don’t know of a lot more that can be nies—the evil tobacco companies—and cost of health insurance for a typical said on the subject. It has been very they have all sorts of statistics that family by as much as $500 to $1,000. In adequately and eloquently addressed they pulled out of their hip pocket, addition, such a deduction could pro- by the two Senators from Kentucky. saying how many lives it is going to vide tax equity for the 10.6 million self- But we talk about equity and we talk save. They are not going to save any employed Americans who currently can about fairness, but the truth of it is lives. only receive a 40 percent deduction, un- that is not even in the vernacular of The point is, I say to my friend from like large corporations, who currently what we are saying here tonight. What Kentucky, it is so much hot air. They can deduct 100 percent of incurred we are doing is very simply this—I said know it is hot air, but they have noth- health insurance premiums. There is it yesterday, I think, or the day be- ing else to say. And they want a head- no doubt that there is merit to the fore—they said it was a historic ses- line back home that Senator Joe Blow goals of this amendment. sion. Yes, it is a historic session. We really socked it to the tobacco compa- As much as I would like to support the amendment presented by my col- are destroying an industry that has nies. No, Joe Blow is not socking it to league today, however, I believe that served this country for 300-plus years, the tobacco companies. and we are simply wiping it out. He is socking it to the low-income the compromise made by the Finance Now, when you go to the 77,000 work- people of this country who do some- Committee should be honored. To do ers in North Carolina and say to them, thing that maybe Joe Blow doesn’t otherwise could place other programs your job is gone, your industry is gone, do—enjoy cigarettes. I don’t smoke. and incentives of vital importance to but the good news is that international Nobody in my family does. But I will the average American family and small air travel is cheaper for you—most of tell you one thing. When you get down business at risk. Because I believe that them haven’t been out of the county. to it, it’s a matter of choice and statis- we have an obligation to make good on So that is what we are saying here. tics—and you can play all sorts of the promises of this bill, I cannot sup- port this amendment. I don’t doubt that the real interest games with statistics. But LAUCH FAIR- The PRESIDING OFFICER. Who here is to reduce and enable people to CLOTH has it right and so does the dis- yields time? deduct their health insurance. I didn’t tinguished Senator from Kentucky. Mr. NICKLES. Would the Senator notice that it was proposed to be paid Both of them have it right about how yield 1 minute to me? for by any 10-cents-a-bushel tax on many jobs this is going to adversely af- Mr. ROTH. I yield 1 minute to the corn. And they go back to Illinois and fect. Senator from Oklahoma. Missouri and explain to the corn farm- This is the game we play. Go ahead Mr. NICKLES. I again remind my ers there that we really have done you and play it if you think you can win. I colleagues. I urge them to vote ‘‘no’’ on a great favor. No, it is on tobacco, hope you can. But get you a little mon- the Durbin amendment. There may be which has been the whipping boy. Any- key and one of these organ grinders a point of order raised on it. I hope body in the Senate or in the Congress and sing this debate that you are mak- they sustain the point of order. I again in the last year or two that had an ax ing about tobacco, then you can be remind them that right after this that needed to be ground, they have really funny. amendment, we will be offering an come to the tobacco industry to grind I thank the Senator. I yield such amendment that will have a significant it for them. That is very simply what time as I may have. improvement on deductibility for self- happened. This is a source of money for Ms. MOSELEY-BRAUN. Mr. Presi- employed persons, one that I believe we whatever eleemosynary or good feeling dent, I would like to express my sup- cannot only pass but hopefully prevail or cause we have. This is a source of port for the spirit embodied in Senator in conference on as well. money. DURBIN’s amendment to S. 949. This The PRESIDING OFFICER. Who As has been said earlier, enough is amendment seeks to increase the yields time? enough. I hope colleagues in the Senate health insurance deduction for self-em- Mr. DURBIN addressed the Chair. will recognize that this has gone far ployed individuals to 100 percent. I The PRESIDING OFFICER. The Sen- enough. It breaks a budget agreement, agree that this is the right thing to do ator from Illinois. and it is time to stop it. and that the Senate should consider Mr. DURBIN. Could I ask my friend I thank the Chair. options for ensuring that small busi- and colleague from Delaware, are there

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00061 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6454 CONGRESSIONAL RECORD — SENATE June 26, 1997 any more requests for time on their the people smoking today—poor and The PRESIDING OFFICER. The Sen- side of the aisle? rich, it is the same thing—‘‘I wish I ator from Illinois has the floor. Mr. ROTH. No. I will yield back my could quit. I really wish I could quit.’’ Mr. DURBIN. Let me tell you this in time. Some of them say, ‘‘You know, if the closing. Mr. DURBIN. Might I have 3 or 4 tax gets too high, I might not be able I have heard a lot of arguments to- minutes? Then I will be prepared to to afford these darned things.’’ night made about the defense of to- yield back the floor as well. So you are talking about helping bacco. I say to my colleagues on both Mr. ROTH. Does the Senator have poor people. You are going to help sides, if you are ready to vote for this time remaining? them quit smoking, and help them live tax bill, you are already imposing a tax Mr. DURBIN. Yes. I believe I have a little longer. That is a real help. on tobacco of 20 cents. I am saying to some time remaining. Again, one of my colleagues said, you that 11 cents is going to buy a lot The PRESIDING OFFICER. The Sen- ‘‘Why don’t you go around and tax of good for America—not only keeping ator from Illinois has 23 minutes left. corn? You have corn in Illinois. Why the products out of the hands of kids Mr. DURBIN. I will not use that, I are you taxing tobacco from my but finally keeping our promise to guarantee you. State?’’ small business and family farmers. Let me say this. I want to respond to There is a big difference. The corn in I urge you to look beyond some of some of the points raised in this de- Illinois and the corn in Missouri can be the arguments that you have heard to- bate. I have been involved in this de- used for nutritious purposes. When it night, that you have heard over and bate for over a decade and have heard comes right down to it, tobacco is nei- over again, and think about the bottom many of these arguments, and I dis- ther food nor fiber—neither food nor line when this is done. Thirty-one agree with them. But I do respect my fiber. cents on a package of tobacco is not colleagues both in the House and in the And let me add this. Tobacco is the going to break the tobacco industry. Senate who make these arguments. I only crop regulated by the U.S. Depart- But it is going to save a lot of small believe they are heartfelt and sincere. I ment of Agriculture which has a body businesses which will have a chance to believe they are speaking for the peo- count, the biggest single preventable survive. ple that they represent. cause of death each year. Don’t stand I yield the floor. I believe I am speaking for the people up and tell me this is another agricul- The PRESIDING OFFICER. Who that I represent not only in Illinois but tural product, another farm com- yields time? across the Nation when I talk about modity. This is an item which, used ac- Mr. ROTH. Mr. President, I make a the need to have some fairness when it cording to manufacturers’ directions, point of order that a quorum is not comes to hospitalization insurance pre- will kill you. That is what tobacco is present. miums and to stop all of the promises all about. It is not another agricultural The PRESIDING OFFICER. The that have gone on for more than a dec- product. clerk will call the roll. ade that we are going to give these peo- So when you talk about imposing a The legislative clerk proceeded to ple fairness. ‘‘Oh, we love small busi- tax on this, we are talking about the call the roll. ness. Oh, we love the family farmer. We health of America and the health of Mr. ROTH. Mr. President, I ask unan- are going to get around to helping you children. Oh, yes, in that low-income imous consent that the order for the on health insurance matters in the group, that regressive tax, that to- quorum call be rescinded. next year 2 years.’’ Senator NICKLES bacco tax—the low-income group in- The PRESIDING OFFICER. Without said maybe 10 years from now we are cludes a lot of Americans who live on objection, it is so ordered. going to get around to it. allowances they get from their parents. Mr. ROTH. Mr. President, has the Please. I have been involved in that Those are the low-income Americans, distinguished Senator from Illinois re- turned all time? debate. Senator DORGAN has. Senator too, kids going and buying tobacco on The PRESIDING OFFICER. No. The CONRAD has. This has gone on for more the corner. Senator from Illinois has 18 more min- than a decade. Mr. FAIRCLOTH. Will the Senator utes remaining. All of these promises we can deliver yield? Mr. ROTH. Does the Senator want to on tonight. Mr. DURBIN. I am happy to yield. yield back? Listen to the arguments. Again, I Mr. FAIRCLOTH. Would you give me Mr. DURBIN. I am prepared to yield find it incredible. an estimate of how many people are One of my colleagues from Kentucky back my time. sick or die from drinking liquor a year Mr. ROTH. I am prepared to yield stands up and says this busts the budg- made out of corn? back the remainder of the time. et deal. What? There was a provision in Mr. DURBIN. I can’t answer you that The PRESIDING OFFICER. All time the budget deal that I voted for on this question. is yielded. floor that limited the tobacco tax to Mr. FAIRCLOTH. If you know a lot Mr. ROTH. Mr. President, the pend- only a 20-cent increase? I missed that about tobacco, then you should know ing amendment is not germane to the provision. I don’t think it was in there. something about corn. provisions of the reconciliation meas- If you will read it closely, that wasn’t Mr. DURBIN. I know that corn is a ure. I, therefore, raise a point of order part of the budget deal. nutritious product and can be used and against the amendment under section I might say to my colleagues. This is is probably consumed on a regular 305(b)(2) of the Budget Act. meddling strange—that you can impose basis by the Senator who asked me the I ask for the yeas and nays. a 20-cent increase in the Finance Com- question. He looks pretty healthy. The PRESIDING OFFICER. Is there a mittee, and it has no impact on em- I will tell you something else. To- sufficient second? ployment in Kentucky or North Caro- bacco is the No. 1 preventable cause of Mr. DURBIN. I move to waive the lina, but Durbin wants to put 11 cents death in America today. You can’t say Budget Act, and I ask for the yeas and on, and all of a sudden we have thou- that about corn, soybeans, wheat or nays. sands of people out of work. My good- any other commodity. You can’t say The PRESIDING OFFICER. Is there a ness. Twenty cents has no impact, and that about it. You know it as well as I sufficient second? 11 cents more we have tipped the do. You can’t make light of the fact There is a sufficient second. scales, and it is all over for tobacco? that a product, if used as intended, The yeas and nays were ordered. Give me a break. Give me a break. kills people. You can’t make light of Mr. ROTH. Mr. President, I suggest What we are talking about here is an the fact that when you follow the man- the absence of a quorum. 11-cent increase on an item which is ufacturers’ directions, you die when The PRESIDING OFFICER. The going to cost you $2, $3, or $4 a pack you use that product. clerk will call the roll. anyway. Mr. FAIRCLOTH. What is the point? The legislative clerk proceeded to You know, they talk about it being a I am not trying to— call the roll. regressive tax. Poor people smoke. Yes, Mr. DURBIN. Mr. President, let the Mr. ROTH. Mr. President, I ask unan- they do. Yes, they do. They are correct Senator speak on his own time. imous consent that the order for the in saying that. Eighty-five percent of Mr. President, regular order. quorum call be rescinded.

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00062 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6455 The PRESIDING OFFICER. Without ing industry which will negatively ef- provide coverage to our Nation’s most objection, it is so ordered. fect everyone that depends on mining vulnerable population. VOTE ON MOTION TO WAIVE THE BUDGET ACT for their economic livelihood. Mr. MURKOWSKI. Mr. President, I The PRESIDING OFFICER. The The intent of this amendment is not rise in strong support of the tax cut question occurs on agreeing to the mo- about percentage depletion. This bull that forms the heart of the second tion to waive the Budget Act in rela- amendment is an overt attempt to pun- reconciliation bill. tion to the Durbin amendment No. 519. ish the hardrock mining industry for I want to take this opportunity to The yeas and nays have been ordered. the lack of success in reforming the commend the chairman of the Finance The clerk will call the roll. 1872 Mining Law. Percentage depletion Committee, Senator ROTH and the The legislative clerk called the roll. is being used as a surrogate to bring ranking member, Senator MOYNIHAN, Mr. NICKLES. I announce that the about reform. If there are problems for their efforts in ensuring that the Finance Committee’s bill was reported Senator from Kansas [Mr. ROBERTS] is with the 1872 Mining Law, we should necessarily absent. approach those problems directly—not with strong bipartisan support. I hope The PRESIDING OFFICER. Are there in the form of repealing percentage de- the spirit of bipartisanship that per- any other Senators in the Chamber pletion. Let’s not wage economic war- meated the committee’s work will ex- who desire to vote? fare against an entire industry. tend to our debate on the Senate floor. Mr. President, during this past week, The yeas and nays resulted—yeas 41, The repeal of percentage depletion is we considered the first budget rec- nays 58, as follows: the wrong tool for bringing about min- onciliation bill which was designed to [Rollcall Vote No. 137 Leg.] ing law reform. The Bumpers amend- ment could have potentially dev- slow the growth of Federal spending YEAS—41 astating effects on the hardrock min- and to stop the hemorrhaging of the Abraham Glenn Lugar ing industry. Medicare Program. And we successfully Biden Gorton McCain achieved both goals while at the same Bingaman Gregg Mikulski CHILDREN’S HEALTH CARE PROVISION Bond Harkin Murray Mr. MCCAIN. Mr. President, today, I time making a commitment to boost Boxer Hutchison Reed voted for an amendment to the Budget funding by $16 billion to enable more Bumpers Johnson Reid Act which would improve access to children in America to obtain health Collins Kennedy Santorum insurance. Daschle Merry Sarbanes health insurance for uninsured children DeWine Kohl The tax bill we are considering today Shelby in our country by providing an addi- Dodd Landrieu builds on that achievement by ear- Specter tional $8 billion to the $16 billion al- Dorgan Lautenberg marking $8 billion from increased to- Torricelli ready contained in this bill for chil- Durbin Leahy bacco taxes for expanded children’s Feingold Levin Wellstone dren’s health care. This $24 billion in Wyden health insurance. With this unprece- Feinstein Lieberman new Federal funding will allow us to dented $24 billion commitment of funds NAYS—58 expand Medicaid coverage for very low- for children’s health insurance, I be- Akaka Enzi Mack income children and will put affordable lieve the Senate has made an invest- Allard Faircloth McConnell health care insurance within the reach ment in the health of the children of Ashcroft Ford Moseley-Braun of every family. Baucus Frist America that should alleviate the anxi- Moynihan I am deeply concerned about the ap- Bennett Graham Murkowski eties and fears of millions of parents Breaux Gramm proximately 10 million children in our Nickles about paying for the health care of Brownback Grams country who are currently lacking Robb their children. Bryan Grassley Rockefeller Burns Hagel health insurance coverage. It is dis- Roth What is even more remarkable about Byrd Hatch tressing that such a large number of Sessions the reconciliation bills we are consid- Campbell Helms our children lack access to primary Smith (NH) ering this week is that at the end of Chafee Hollings and preventative care. I find it even Cleland Hutchinson Smith (OR) the process, we will have set this Gov- Coats Inhofe Snowe more disconcerting that recent reports ernment on course to finally achieve a Cochran Inouye Stevens indicate that most of these children re- balanced budget. While I believe the Conrad Jeffords Thomas side in families with one or more work- Coverdell Kempthorne Thompson tax cuts contained in this bill provide Craig Kerrey Thurmond ing parents. much needed financial relief for the D’Amato Kyl Warner Providing access to health care for vast majority of working Americans, I Domenici Lott uninsured children has been a priority believe our greatest achievement is NOT VOTING—1 for me since coming to the Senate. balancing the budget. During the 103d Congress, I offered leg- Roberts What that means is that when this islation which attempted to address agreement is fully implemented in 5 The PRESIDING OFFICER. On this this problem and provide access to years, the Federal Government will no vote, the yeas are 41, the nays are 58. health care for many of our Nation’s longer have to borrow to keep this Three-fifths of the Senators duly cho- uninsured children. This issue has re- Government operating. Most impor- sen and sworn not having voted in the mained a high priority for me in the tantly, the balanced budget will give us affirmative, the motion is rejected. 105th Congress and I am pleased that the opportunity to finally begin paying The point of order is sustained and we were able to pass this amendment down our enormous $5-plus trillion na- the amendment falls. today. tional debt. Mr. ROTH. Mr. President, I move to This amendment is financed by a 20- Mr. President, on Monday, the reconsider the vote. cent-a-pack increase in the cigarette world’s financial markets were re- Mr. MOYNIHAN. I move to lay that tax, which will raise enough revenues minded of the enormity of the Amer- motion on the table. to provide the additional $8 billion for ican Government’s debt and the impact The motion to lay on the table was children’s health insurance coverage. that debt has on the global market- agreed to. Although I have traditionally opposed place. When Japanese Prime Minister AMENDMENT NO. 518 new taxes, I believe that this proposal Hashimoto suggested that he was Mr. BAUCUS. Mr. President, I op- is necessary to help working parents tempted to sell off portions of Japan’s posed the Bumpers Amendment that purchase affordable health care cov- American debt portfolio to stabilize would repeal percentage depletion for erage for their children. the yen/dollar exchange rate, markets hardrock mining companies operating I wholeheartedly believe that every plummeted throughout the world. On on public and formerly public lands. I child deserves a healthy beginning in Wall Street, we saw the Dow Jones av- believe this amendment is the wrong life. There should not be any children erage drop 192 points, the second larg- approach to bringing about mining law in our country who cannot count on ac- est point decline in exchange history. reform. cess to quality health care when they Although markets recovered after Hardrock mining provides many need it. I believe that this bipartisan Japan’s Finance Minister dismissed the high-paying jobs and is essential to the children’s health insurance proposal idea that Japan would dump it’s Treas- economy of Montana. This amendment will address this problem in a fiscally ury securities, the lesson is unmistak- would raise taxes on the hardrock min- responsible manner and allow us to able. The security of our economy can

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00063 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6456 CONGRESSIONAL RECORD — SENATE June 26, 1997 never be assured so long as this coun- this bill since I think we can all agree nance the cost of government, our try continues to run deficits and pile that the goal of providing tax relief for challenge has always been how much up billions in additional debt. As long hard-working Americans and encour- government and at what cost. as we must turn to world markets to fi- aging savings and investment are in In my view, the power to tax is the nance Government spending, our the best long-term interests of our Na- most ominous and potentially destruc- economy’s health is always in danger tion. tive power granted to government by of being held hostage to the political AMENDMENT NO. 518 the people and that is because taxes whims of foreign governments and Mr. KYL. Mr. President, as he has empower governments, not people, speculators. done numerous times over the past 10 With that in mind, our tax policy That is why it is so important that years, Senator BUMPERS again at- should do no more harm than is nec- we balance the budget and begin to pay tacked the hardrock mining industry essary to achieve its stated good. This down the debt. And that is why these in the United States. This time, he maxim underscores why we need to reconciliations bills are vital to our chose to introduce an amendment to change our current system, and specifi- Nation’s economic security. the Tax Reconciliation Bill to repeal cally eliminate the estate and capital Mr. President, the tax bill before us the percentage depletion allowance. gains taxes. provides much-needed relief for the This allowance has been in the tax code Our current tax system promotes hard-working middle-income families for over 60 years and repeal would be waste and inefficiency, penalizes sav- who have not seen their tax burden re- an arbitrary tax increase on the indus- ings and investment and rewards de- duced in 16 years. Despite what some of try. my colleagues on the other side of the Repeal of the allowance is a tax in- pendency. Not only is the current Tax aisle may allege about this tax bill, the crease. Mining companies cannot re- Code inequitable in who and how it lion’s share of the income tax cuts—81 cover higher costs, including higher taxes, it is responsible for fueling much percent—will go to families earning be- taxes, by raising prices because min- of the growth of government and Fed- tween $12,000 and $62,000. eral prices are set by international eral spending. Changing how we collect This bipartisan bill will reduce the commodity market. It should be noted revenue to pay for the cost of govern- taxes paid by every low- and middle-in- that the mining industry already pays ment will be a significant step in help- come family with a child by $500. For a high average federal tax rates—32 per- ing devolve power from Washington family with three children under 13, cent per a GAO study—because of the back to the people and restoring great- their tax burden will be reduced by corporate alternative minimum tax. er freedom. $1,500. That’s $1,500 that the family will In addition to the damage that would We need to address significant tax have available to pay off bills, buy be done by this arbitrary tax increase, policy changes that will not only pro- clothing for their children or spend as I would emphasize that this is not the vide taxpayers’ relief, but will simplify they see fit. way to reform the mining law. Al- and equalize tax collection. Taxation is A provision in the bill requires fami- though Senator BUMPERS and I may bad enough without administering that lies with children between the ages of not agree on the specific reforms nec- tax through an inefficient, inequitable, 13 and 17 to invest their $500 children’s essary, we do both agree that a com- complex and unresponsive tax system. tax credit in an educational savings ac- prehensive, responsible reform is nec- count. While I think it is important Yesterday, the National Commission essary. Along with my other Western that we do as much as we can to en- on Restructuring the IRS came out colleagues, I would like to see reform courage families to save for college, I with their report and recommenda- that is environmentally sound and al- think it is inappropriate for us to re- tions. I have not had an opportunity to lows industry to thrive in a healthy quire families to establish these ac- review their report completely, but I and supportive atmosphere. A one-shot counts. I will support an amendment did note that simplification on the Tax that will debate this provision from the tax increase on the Senate floor is nei- Code was among one of their primary bill. ther comprehensive nor responsible. recommendations, including estab- The bill also provides more than $30 Any reform of such an economically lishing one broad based tax system. million in tax relief for families that significant domestic industry should be While the Commission was not are facing enormous college education done through the committee process tasked and did not address specific leg- bills. And it encourages economic where all parties have a chance to be islative proposals to reform the tax growth and savings by reducing the heard and the issues can be dealt with system, I believe that the underlying capital gains tax and expanding indi- in a thoughtful and meaningful man- principle of seeking a‘‘truly fair and vidual retirement accounts. ner. comprehensive’’ tax system is some- I also applaud the changes the com- I voted against the Bumpers amend- thing we can all agree on And I would mittee made to the estate tax, with the ment today and I am pleased that it take this opportunity to commend my goal that family businesses should be was defeated. colleagues from Nebraska and Iowa for kept together rather than split apart BROAD BASE REFORM their leadership on this issue. Mr. SHELBY. Mr. President, the bill in order to pay estate taxes. In fact, While I believe a flat tax is the most Mr. President, it is my hope that we before the Senate tonight, promises to provide about $75.8 billion in tax relief equitable replacement that supports can fundamentally change, if not the most freedom at the least cost— eliminate, the estate tax with what can over the next 5 years and approxi- this resolution is not an endorsement only be called confiscatory tax rates. mately $238 over 10 years. Mr. Presi- of the flat tax. It only calls for Con- Although we have not been able to dent, that is a good step forward. But, gress and the President to move for- achieve that result in this bill, I think Mr. President, I rise tonight to remind ward with consideration of broad based that should be one of our goals when and encourage my colleagues that reform. we consider fundamental tax reform in while this bill might be viewed as a the future. good step forward in providing tax re- While this bill attempts to reverse Mr. President, the items I have just lief to the American people. It is just the punitive effects of our tax policy noted represent the highlights of the that: a step forward—hopefully, toward and tax system which currently pun- bill. What is again worth mentioning is greater reform in the future. ishes the basic values of work, savings how we were able to craft this bill. We I will offer a sense-of-the-Senate res- and individual liberty, it is not suffi- did it with input and good debate be- olution for a very simple, but very im- cient to undo the basic premise that tween Republicans and Democrats on portant purpose: We must not forsake seems to underlie the current system the committee. There was no rancor. our broader agenda to seek comprehen- and that is that the Government is en- We were not partisan, we tried to work sive reform of our tax system. Tax cuts titled to all that you earn. And only within the confines of the budget are not a substitute for broad based re- through selected, targeted tax credits, agreement negotiated by our leader- form. deductions, exemptions and the like ship with the White House. Mr. President, while we live in a soci- are the American people allowed to I would hope that that spirit of bipar- ety that accepts the notion that some keep portions of the income that they tisanship will continue as we debate level of taxation is necessary to fi- work hard every day to earn.

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00064 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6457 Our tax policy should support the above listed amendments, it be in order Several Senators addressed the most freedom at the least cost and em- for any Member of the Senate to ad- Chair. body the least intrusive means of lev- dress the Senate with respect to an Mr. LOTT. Our understanding is Sen- ying and collecting taxes. But most im- amendment that may be offered after ator BYRD is going to offer his sepa- portantly of all, Mr. President, we need all time is expired, but there be no fur- rately. a policy that does not punish the basic ther amendments to be in order this Mr. President, I renew my request values of work, savings and individual evening. based on the three-unanimous consent liberty. I further ask that at the conclusion request paragraphs I read, with the ad- Mr. President, without comprehen- of the remainder of the time on S. 949, dition of the Domenici request. sive tax reform, we will never truly be the Senate automatically proceed to a Mr. REID. Reserving the right to ob- able to say that the era of big govern- period of morning business with Sen- ject. ment is over. ators permitted to speak for up to 10 Several Senators addressed the Mr. President, I would encourage my minutes each. That way, if all time has Chair. The PRESIDING OFFICER. The Sen- colleagues to join me and the Senator expired and you have an amendment from Idaho in supporting this sense-of- ator from Nevada. that you are going to offer tomorrow, Mr. REID. Mr. President, I direct the the-Senate resolution. you have that 10 minutes in which you Mr. LOTT. Mr. President, I do want question to both leaders. I have some can explain tonight what your inten- trouble understanding why there would to propound a unanimous consent re- tions are, what is in the amendment; so quest here, that would allow us to be amendments in order in the morn- I ask at the conclusion of the remain- ing. It would seem to me this process carry out the indication that we have ing time on S. 949 the Senate automati- has gone on for several days and there put at the table here that this would be cally proceed to this period of morning should come a time when you make a the last vote of the night. business. decision whether you are going to offer Before I do that, I want to say again Mr. BIDEN. Reserving the right to I really appreciate the bipartisan co- an amendment. The leaders have been object. very generous, they are going to allow operation that we have had throughout The PRESIDING OFFICER. Is there this week. I think it has made the Sen- amendments to be offered after the objection? time has expired. But I would think ate look good and it has taken a lot of Mr. DOMENICI. Reserving the right that should end sometime tonight. I work and several of us have had to to object. Mr. Leader, would you clar- don’t think we should come in here in keep our commitments in a way that ify for me please, and I regret to take the morning, fresh as daisies, with a was not always easy, but we have stuck your time, will there be no amend- big pile of new amendments. by it on both sides of the aisle. I thank ments offered tomorrow that are not Mr. LOTT. The Senator’s point is the Senators for doing that. I appre- offered tonight? well taken and I certainly agree. Sen- ciate also your tolerance when I suf- Mr. LOTT. No. Under this agreement, ator DASCHLE and I would hope there fered mightily on one of the votes my- if a Senator has not had the oppor- would not be a long series of amend- self today. tunity to offer his amendment today, ments offered tomorrow. The chairman and the ranking mem- he or she would be able to offer their Some Senators will feel very strongly ber have been a pleasure in working amendment in the morning with time and feel like they should have that op- through all of this. I thank them and equally divided between those for and portunity. Under the rules as they now their staff. It is a little premature. I against it, 2 minutes each—the usual 1 exist we could not cut them off. We think we are tired, we are trying to minute on each side to explain that have had a good debate. We have had find a way to complete our work, but it amendment and a vote. the alternative amendment offered by is important we also take note of the Mr. DOMENICI. Mr. Leader, they the Democratic leader. We have had fact that we have been doing some good would have 1 minute on a side tomor- other good amendments and debates work working together. We want to row? that occurred. We hope we could bring keep that going. Mr. LOTT. Yes. Right. it to a conclusion at a reasonable time So we have a unanimous consent re- Mr. DOMENICI. Mr. Leader, we have tomorrow. quest that we have worked with Sen- worked with everybody that had proc- I remind my colleagues we had 16 ator DASCHLE on. He has made a lot of ess amendments. They don’t have to votes yesterday, I believe it was. We very positive recommendations. We offer them, and I am not asking espe- started at 9:30 and we finally concluded think this would be the fairest way cially for them to offer them, but I that at about 5 o’clock yesterday after- under the process that we have now to wonder if we couldn’t get an agreement noon. Now I believe we can do a better complete our work. that would set in motion, so everybody job. We’ll start earlier tomorrow and I want to say, Senator DASCHLE and would understand, these process we will stick to the 10-minute vote Senator DOMENICI, Senator BYRD and I amendments? Could I try a request on after the first vote. And we will try to have been talking about the fact that for you and see if you can agree? move it right along. But we found the we need to take a look at the process I ask consent that the withdrawn other night that when we said OK, just and see if we cannot come up with a amendment No. 537, that withdrawal be leave your amendment with the man- little better way to do it without the vitiated—that is the one I offered—and agers of the bill, when we came in in votes in seriatim at the end of this that a motion to waive with respect to the morning we had 61 amendments. process. Senator BYRD has a resolution amendment 537 be made and that it not Then the leadership, Senator DASCHLE he is going to introduce. Senator be amendable, the motion to waive is and his whip team, as we were, were DASCHLE and I are going to appoint a agreed to the amendment, and if it is, running around trying to find out task force of senior Senators to see if it be treated as original text. Then I which amendments really—what they we cannot come up with some ideas we ask consent that the following Sen- do. You know, will the Senator insist can agree to, to allow this process to be ators, if they choose, be authorized to on offering it? Can we get them accept- done better in the future. offer amendments for budget process: ed? It really complicated the process. UNANIMOUS CONSENT AGREEMENT BIDEN, GRAMM—Senator GRAMM of We really believe by this process Sen- Mr. LOTT. But, in view of what we Texas, Senator BUMPERS, Senator ators will be able to debate these have to deal with, I ask unanimous GREGG, Senators BROWNBACK, FRIST, amendments and other amendments to- consent, now, that during the remain- and ABRAHAM. And if they offer them night. Then they, based on their think- der of the consideration tonight of S. they would be taken up in that order ing tomorrow, they would have the op- 949, the following be the only amend- tomorrow. portunity or perhaps would choose not ments in order, other than agreed-upon Mr. LOTT. These are the amend- to offer the amendments tomorrow. amendments to be offered by the man- ments having to do strictly with proc- But if they do we cannot—we cannot agers: The Nickles amendment, the ess questions. I know there is a lot of cut off the Senators’ right to offer an Gramm amendment, and Kerry of Mas- interest in these process amendments. amendment. sachusetts amendment. I further ask at I am not familiar with the content of Mr. REID. Reserving the right to ob- the conclusion of the debate on the all of them. ject, continuing my reservation, I say

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00065 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6458 CONGRESSIONAL RECORD — SENATE June 26, 1997 to my friend the majority leader, I am Mr. DOMENICI. I think that’s up to bipartisan way, figure the best way to going to withdraw my reservation. But the floor manager as he sequences over deal with this, the fairest way, and also I do say this. I want everyone to hear, the evening. He’ll go over all the the way that would hopefully not lead including the senior Senator from West amendments and I assume he’ll se- to the largest number of amendments. Virginia. If we don’t get a change in quence the way we did and put the We really think that we may actually the process by next year I am going to whole list together. We are not seeking wind up having fewer amendments fi- object to everything. This is a ridicu- any special preference in that list. nally voted on tomorrow by doing it lous process. I don’t think it is good for Mr. DASCHLE. It doesn’t preclude this way. We tried it the other way. the system and I hope we change it. any other Senator from offering Bear with us as we try it this way. Mr. LOTT. I agree and I appreciate amendments? Again I urge, unless you just really the Senator’s comment on that. I have Mr. LOTT. Not at all. It would not feel you have to have a vote on your been thinking that for several years. I preclude other Senators from offering amendment tomorrow I urge you, and I remember one day here we had, what, amendments. I want to say to the Sen- will be saying it on this side—but but if 39 votes and set a record, a historical ator— you feel strongly, you can talk about it record Senator BYRD told us. It is just Mr. DASCHLE. The question would tonight and offer your amendment to- not a good process. be—I’m sorry, if I can just interject? If morrow. We are committed to coming up, by there was an amendment on one of the Mr. DODD. Reserving the right to ob- September 8, within the next couple of amendments offered, would the se- ject. months, with a way to change the proc- quencing preclude an amendment to The PRESIDING OFFICER. The Sen- ess. In fact, Senator BYRD has some one of the amendments? ator from Connecticut. good ideas. But I just want to make Mr. DOMENICI. I did not make that Mr. DODD. I inquire of our leader or sure that we have thought it through request. our friend from New Mexico, is it nec- and we don’t start and change it with- Mr. DASCHLE. I ask consent that be essary the process amendments be con- out thinking about unintended con- considered. I don’t think that would sidered as part of this budget agree- sequences. I don’t believe anybody in- matter, but I think we need to protect ment, or would it not be better to deal tended 10 years ago, when reconcili- Senators in that regard. with that as a side issue and deal with ation was set up, that it would lead to Mr. DOMENICI. If a Senator wants the amendments that bear directly on this type of voting process. We are an up-or-down vote on his process I the tax bill and then bring up the proc- committed on both sides, the leader- would not object to that request. ess amendments on a separate occa- ship and our senior Members, to com- Mr. LOTT. I have not had a chance to sion? Is there reason that has to be a ing up with a better process. We are get into the specifics of each one of part of this, I inquire of the leader or going to do that. We certainly would these amendments, but I hope we could distinguished Senator from New Mex- like the input of the Senator from Ne- pursue the possibility of not going ico? Mr. DOMENICI. I could have offered vada, too. through the long list of process amend- a process amendment that I think is Mr. DASCHLE. Mr. President, reserv- ments. At least half of these are on our needed and other Senators think are ing the right to object? side of the aisle. So I hope we could needed. I could have offered it on the Mr. ALLARD. Mr. President, I say to find another time, another day, an- the majority leader, I did not hear my first bill that went through here, the other way to do these process amend- name listed on that list of amend- reconciliation bill. I chose to wait for ments. I will certainly be working on ments, it is the Allard-4Abraham- this bill. It is just as in order on this that later on tonight and in the morn- Brownback amendment. bill and just as subject to a point of ing. Mr. DOMENICI. We have Senator order on this bill as on the other bill, Since we have the first 3 votes al- BROWNBACK. Do you have a separate but there is no other reconciliation bill ready lined up that would give us time one from Senator BROWNBACK? coming down the field. Mr. ALLARD. It’s under my name ac- to do some work on exactly whether or Mr. DODD. I understand. If my col- tually, Allard-Brownback; Senator not this is essential. I will work with league will yield, I understand this. Senator DASCHLE on that. ABRAHAM is a cosponsor. Time is running out. If we don’t debate Mr. LOTT. It’s ALLARD-BROWNBACK. Mr. DOMENICI. Mr. President, there it this evening or during morning busi- OK. We got that. are points of order not waived on any ness, tomorrow we will be limited to a Mr. DASCHLE. Mr. President, reserv- of these. The points of order—if people 1-minute explanation of process ing the right to object. want to make them you have to get 60 amendments that have to do with the The PRESIDING OFFICER. The votes and everybody knows that. budget process that I think are rather Democratic leader. The PRESIDING OFFICER. Is there significant. Mr. DASCHLE. For purposes of clari- objection? The Senator from Min- I am concerned that something as fication, let me first say I subscribe to nesota. profound as dealing with the budget what the majority leader is attempting Mr. WELLSTONE. Mr. President, process is left to seconds to debate to do here. We hope that we can accom- this is not an objection. I am not going them, and unnecessarily so. I raise the modate the largest number of Senators to object. But just the question, if I issue of whether we ought to set that with this process. I think there are could ask it. My understanding is—I for a separate time, rather than deal some questions, however, about what mean, there are a number of us—all of with this? happens tomorrow morning beginning us would like to finish. Some of us Mr. LOTT. Mr. President, if I can re- with what time we vote. I think the have been waiting a long time, many, spond again, I share a lot of the Sen- majority leader has now indicated 9 to have amendments and to discuss ator’s feelings. We will work to see if o’clock. them and I don’t think we want to pro- there is some way we can get an agree- Mr. LOTT. Yes, 9 o’clock, so we will long the matter. My understanding is ment on these process amendments to start earlier and we will start voting— as opposed to the beginning of the limit the number or to find another we would have the brief explanation week, we don’t actually have to lay the time and opportunity for them to be of- and we would start voting immediately amendment down tonight in order to fered. after that. We would then vote one have that amendment up tomorrow; I remind you that yesterday, one after the other until we completed the am I correct? My second question is, unanimous consent agreement that we process. wouldn’t it be a little bit more expedi- worked out took nine amendments off Mr. DASCHLE. The second question tious if in fact the amendment could be the board in one swoop, and we agreed has to do with the request made by the laid down so we don’t have to go to something that was passed by voice distinguished Senator from New Mex- through that process at all tomorrow vote. I am not sure we can do that ico. As I understand it, what he is at- morning with the requirement if they here. Part of what we need is a little tempting to do is sequence a series of are not laid down tonight they would time to work with what we have left. amendments. I guess the question be out of order? Mr. DODD. I understand. would be, at what point tomorrow does Mr. LOTT. We have discussed that Mrs. BOXER. Reserving the right to that sequencing begin? back and forth. We tried to again, in a object, and I shall not object, I have a

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00066 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6459 question for the majority leader. If we The PRESIDING OFFICER. That is tinue on the 1 hour and 5 minutes that were able to work out amendments correct. is rapidly dissolving? If staff will cleared on both sides, is it necessary Mr. BYRD. Mr. President, reserving please take their seats and if conversa- for us to personally offer it, or can one the right to object—I will not object— tions will please cease, we can continue of the managers offer it in our name if I am concerned about these process with the business of the Senate. it has been cleared, because that would amendments. I am particularly con- The Senator from Oklahoma. speed things along. cerned that there may be a process Mr. NICKLES. Mr. President, I thank Mr. LOTT. The UC specifically says amendment that would wipe out the you for getting order in the Senate. ‘‘other than agreed upon amendments Byrd rule. I am also concerned that Mr. KOHL addressed the Chair. to be offered by the managers.’’ there might be a process amendment Mr. NICKLES. Mr. President, I will Mrs. BOXER. I want to make sure that would wipe out all 60-vote points be happy to yield to the Senator from they will be offered in the name of the of order. Either of those would be pret- Wisconsin for 2 minutes without losing Senator who wrote them rather than ty fatal to this process. my right to the floor. The PRESIDING OFFICER. The Sen- the manager. And I hope that while we have both Mr. LOTT. I believe that is the way ator from Wisconsin. leaders here and a good size attend- they do them. AMENDMENT NO. 524 Mrs. BOXER. I have no objection. ance, that we will be very aware, very alert to the possibility of either of Mr. KOHL. Mr. President, tomorrow I Mr. COATS. Reserving the right to will up amendment No. 524 which I be- those, which would mean that the rec- object. lieve is at the desk. This amendment onciliation process, as we know it—per- Mr. BYRD. Mr. President, reserving creates a tax incentive for companies haps we don’t like it as we know it— the right to object. that provide child care for the depend- but it will be gone. Period. I hope it The PRESIDING OFFICER. The Sen- ents of their employees. The amend- won’t happen. Would the Senator in- ator from Indiana. ment is also cosponsored by Senators Mr. COATS. Mr. President, I have a clude me as a Senator who might offer DASCHLE, DEWINE, BOXER, D’AMATO, question for the majority leader. He a process amendment or a motion? MOSELEY-BRAUN, SNOWE, SPECTER, and listed three amendments to be debated Mr. DOMENICI. I so request. May I JOHNSON. this evening, I believe those of Senator say to Senator BYRD, we very carefully Our amendment creates a tax credit NICKLES, Senator GRAMM of Texas, and looked at these amendments with the for employers who get involved in in- Senator KERRY. Is there a time limita- view that you have in mind, and I can creasing the supply of quality child tion on the debate of those? The reason tell you that none of the process care. The credit is limited to 50 percent I ask is because for those who want to amendments that are listed in the of $150,000 per company per year. stay afterward and take the 10 minutes unanimous-consent request address ei- The amendment is based on S. 82, the to describe an amendment that will be ther the Byrd rule, nor do any of those Child Care Infrastructure Act, which offered tomorrow, it will be good to amendments—what was your other? has received praise from businesses, know that there is some limitation on Mr. BYRD. Wipe out 60-vote points of parents, and day care workers alike. the time for debate for those three par- order. Working Mother magazine gave the ticular amendments. Mr. DOMENICI. Nor do they attempt initiative its ‘‘Lollipops’’ award in the Mr. LOTT. In answer to the Senator, to permit us to vote with less than 60 January issue, and the Children’s De- I say there was no time agreement votes on any of these matters that are fense Fund has endorsed it. S. 82 is also worked out, partially because the Sen- subject to a point of order. endorsed by the National Center for ators didn’t want that time agreement. Mr. BYRD. Mr. President, I am great- the Early Childhood Work Force and I am hoping they will be actually rel- ly relieved, and I thank the Senator. the National Child Care Association. atively short in time. I know Senator Mr. LOTT. Mr. President, before I The amendment responds to a great NICKLES doesn’t need a lot of time. I put forth the unanimous-consent re- need, a great challenge, and a great op- believe these amendments will go rel- quest one more time, we did add the portunity. The need is to provide a safe atively quickly, and there will be time Byrd resolution or amendment to the and stimulating place for our youngest left for other Members to address the process list of amendments, and I children to spend their time while their Senate on their amendments. And then renew my unanimous-consent request. parents are at work. The challenge is after that, when all time has expired, The PRESIDING OFFICER. Is there to make the American workplace more Senators can still talk in morning objection? Without objection, it is so productive by making it more respon- business for up to 10 minutes. We did ordered. sive to the needs of the American fam- not get a time agreement in our effort Mr. LOTT. For the information of all ily. And the opportunity is to take to get the UC worked out, but I think Senators, then, there will be no further what we are learning about the impor- we are talking about a relatively short votes tonight. Following debate on the tance of early childhood education and period time of time. three amendments, any Senator wish- Mr. BYRD. Mr. President, reserving use it to help our children become the ing to discuss an amendment that may best educated adults of the 21st cen- the right to object. be offered tomorrow may do so. The The PRESIDING OFFICER. The Sen- tury. Senate would then begin voting at 9 ator from West Virginia. The credit is offset by authorizing an Mr. BYRD. My reservation, Mr. a.m. on Friday, on or in relation to the anti-fraud program that will keep par- President— three listed amendments and any ents who do not have custody of their The PRESIDING OFFICER. May we amendments offered tomorrow. If Sen- children from unlawfully claiming have order in the Senate, please? The ators do intend to offer amendments child-related tax benefits. Senator from West Virginia. tomorrow, I urge them to please give a Child care is an investment that is Mr. BYRD. While I have submitted a copy to the managers, since there will good for children, good for business, reservation, may I offer a parliamen- be no debate time other than the 2- good for our States, and good for the tary inquiry? Will a motion to recom- minute-equally-divided time. It will be Nation. We need to involve every level mit, either a straight motion to recom- very helpful to all Senators to have of government—and private commu- mit or a motion to recommit with in- these amendments available so they nities and private businesses—in build- structions, still be in order, even can be given to interested Senators. ing a child care infrastructure that is though a Senator has not reserved a I yield the floor. We have approxi- the best in the world. Our amendment spot on this list? mately 1 hour and 5 minutes left of is a first, essential and deficit neutral The PRESIDING OFFICER. Under time on the bill. step toward that end, and I urge all my the Budget Act, the only motion to re- Mr. NICKLES addressed the Chair. colleagues to support it. commit that can be considered is one The PRESIDING OFFICER. The Sen- Mr. HATCH. Mr. President, I rise to that occurs within 3 days; it specifies ator from Oklahoma is recognized. support Senator KOHL’s amendment. the bill be reported back in 3 days. Mr. NICKLES. Mr. President, the This amendment would provide tax Mr. BYRD. And is that motion in Senate is still not in order. credits to encourage businesses and order any time prior to the conclusion The PRESIDING OFFICER. May we other institutions to provide child care of action on the bill? have order in the Senate so we can con- for their employees.

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00067 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6460 CONGRESSIONAL RECORD — SENATE June 26, 1997 This proposal, which is similar to one least expensive way I can think of to In this amendment, we don’t get that I included in my original child stimulate private sector investments there for several years, but at least we care bill several years ago, would pro- in child care. It is now time to set the will accelerate it and make a better vide a tax credit for businesses that infrastructure in place for the most im- deal for self-employed persons at a build on- or near-site day care centers, portant years in the development of more rapid rate. jointly participate with other busi- our children. There is an increasing On behalf of my colleagues cospon- nesses in running child care centers, or struggle to balance work and family. soring this amendment, I send the contract with child care facilities. This How well we respond will determine amendment to the desk and ask for its amendment is important in order to the success of our future. consideration. meet the rapidly increasing demand for I encourage my colleagues to support The PRESIDING OFFICER. The child care. I recognize the importance this important amendment, and I com- clerk will report. of finding safe places for our children mend Senator KOHL for his work on it. The assistant legislative clerk read while their parents are at work, pref- Mr. KOHL. I ask unanimous consent as follows: erably places where they can learn and that this be the first amendment taken The Senator from Oklahoma [Mr. NICK- have wholesome fun. We use the Tax up tomorrow morning for a vote after LES], for himself, Mr. HAGEL, Mr. CLELAND, Code to encourage a variety of private the three amendments laid down to- Mr. DOMENICI, and Mr. THURMOND, proposes endeavors; we should not hesitate to night. an amendment numbered 551. use the tax code to encourage private The PRESIDING OFFICER. Is there Mr. NICKLES. Mr. President, I ask businesses to become involved in pro- objection? unanimous consent that the reading of viding child care for dependents of Mr. KENNEDY. Reserving the right the amendment be dispensed with. their employees. to object. The PRESIDING OFFICER. Without This tax credit would be equal to 50 The PRESIDING OFFICER. The Sen- objection, it is so ordered. percent of the qualified child care ex- ator from Massachusetts. The amendment is as follows: penditures up to a maximum of Mr. KENNEDY. Can I ask a question On page 212, between lines 11 and 12, insert: $150,000, paid or incurred by the em- about whether we can at least get an SEC. ll. INCREASE IN DEDUCTION FOR HEALTH ployer during the taxable year to ac- understanding about the sequence? I INSURANCE COSTS OF SELF-EM- quire, construct, rehabilitate, expand, don’t mind whether I am fourth or PLOYED INDIVIDUALS. (a) IN GENERAL.—The table contained in or operate a qualified child care facil- eighth. ity. section 162(l)(1)(B) is amended to read as fol- Mr. NICKLES. Mr. President, I think lows: Parents of young children are joining I have the floor. the work force in record numbers, lead- ‘‘For taxable years be- The applicable percent- The PRESIDING OFFICER. The Sen- ginning in calendar age is— ing to more young children in the need ator from Oklahoma has the floor. year— of care as their parents go off to work. Mr. NICKLES. Mr. President, I yield- 1997 ...... 50 There are more single parents today ed to the Senator from Wisconsin for 2 1998 ...... 55 than ever before. In has been reported minutes, and now I wish to reclaim the 1999 through 2001 ...... 60 2002 ...... 65 that up to 62 percent of working moth- floor. ers have children under 6 years old and 2003 through 2005 ...... 80 The PRESIDING OFFICER. The Sen- 2006 ...... 90 59 percent had children under 3 years of ator from Oklahoma has the floor. 2007 or thereafter ...... 100.’’ age. This amendment would give incen- AMENDMENT NO. 551 (b) EFFECTIVE DATE.—The amendment tives for any company, small or large, (Purpose: To increase the deduction for self- made by this section shall apply to taxable to provide child care to its employees. employed health insurance costs, and for years beginning after December 31, 1996. Studies have shown that organiza- other purposes) On page 159, line 15, strike ‘‘December 31, tions that provide child care benefits Mr. NICKLES. Mr. President, tonight 1999’’ and insert ‘‘May 31, 1999’’. to their employees attract and retain On page 159, line 18, strike ‘‘42-month’’ and I offer an amendment on behalf of my- better qualified applicants and experi- insert ‘‘35-month’’. self, Senator HAGEL, Senator CLELAND, ence reductions in employee absentee- On page 159, line 19, strike ‘‘42 months’’ and Senator DOMENICI which would in- ism. But, the argument goes that if the and insert ‘‘35 months’’. crease the deductibility of health in- On page 160, lines 10 and 11, strike ‘‘Decem- employer benefits from providing child surance for self-employed individuals. I ber 31, 1999’’ and insert ‘‘May 31, 1999’’. care benefits, why should we subsidize will not take long. I mentioned it a On page 160, lines 19 and 20, strike ‘‘Decem- the costs with a tax credit. That is not couple of times during debate on the ber 31, 1999’’ and insert ‘‘May 31, 1999’’. a bad question. On page 400, between lines 14 and 15, insert: Durbin amendment. But, I suggest that society has a SEC. ll. MODIFICATION OF RULES FOR ALLO- stake in this as well. Not only will our The current law allows for self-em- CATING INTEREST EXPENSE TO TAX- workforce respond positively given the ployed persons to deduct 40 percent in EXEMPT INTEREST. peace of mind that comes from know- 1997. We actually increased that—if I (a) PRO RATA ALLOCATION RULES APPLICA- BLE TO CORPORATIONS.— ing that your children are safe and remember, Senator Dole, Senator ROTH and several of us last year in the last (1) IN GENERAL.—Paragraph (1) of section thriving, but also, we must be con- 265(b) is amended by striking ‘‘In the case of cerned with the health and safety of Congress increased that—over several years, and eventually by the year 2004, a financial institution’’ and inserting ‘‘In the our children. It is disturbing whenever case of a corporation’’. we read about children left alone or it would be at 60 percent. We would (2) ONLY OBLIGATIONS ACQUIRED AFTER JUNE children in inadequate or unsafe facili- like to accelerate that. That is what 8, 1997, TAKEN INTO ACCOUNT.—Subparagraph ties. I believe that the small innova- this amendment does. It would improve (A) of section 265(b)(2) is amended by strik- tion of a tax credit to defray the costs it from 1997, the year we are in, from 40 ing ‘‘August 7, 1986’’ and inserting ‘‘June 8, of employer-sponsored child care will percent to 50 percent. In 1999, it im- 1997 (August 7, 1986, in the case of a financial institution)’’. do wonders to address this increasing proves it from 45 percent to 60 percent, (3) SMALL ISSUER EXCEPTION NOT TO need of American families. and in the year 2003, it improves it from 50 percent to 80 percent, and so APPLY.—Subparagraph (A) of section 265(b)(3) Mr. President, child care is an invest- is amended by striking ‘‘Any qualified’’ and ment for the future. It is good for busi- on. We want to improve and accelerate inserting ‘‘In the case of a financial institu- ness, good for our communities, and health insurance deductibility for the tion, any qualified’’. good for the Nation. There certainly is self-employed. (4) EXCEPTION FOR CERTAIN BONDS ACQUIRED a need for quality child care. As a na- Mr. President, I used to be self-em- ON SALE OF GOODS OR SERVICES.—Subpara- tion, we have made significant in- ployed, and it always bothered me that graph (B) of section 265(b)(4) is amended by creases in the education of our older I used to manage a corporation and the adding at the end the following new sen- children, aged 5 to 25. We have in- corporation could deduct 100 percent of tence: ‘‘In the case of a taxpayer other than health care premiums, but my com- a financial institution, such term shall not creased Headstart. But, we need to do include a nonsalable obligation acquired by more. And, we need to create more op- pany, when I was self-employed—it was such taxpayer in the ordinary course of busi- tions. a janitor service—could only deduct 40 ness as payment for goods or services pro- This tax credit proposal made by percent. I would like parity, and, hope- vided by such taxpayer to any State or local Senator KOHL is the least intrusive and fully, eventually we will get there. government.’’

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00068 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6461 (5) LOOK-THRU RULES FOR PARTNERSHIPS.— some time remaining yet on the actual Our argument has always been the Paragraph (6) of section 265(b) is amended by debate of the bill. same: We want to let families decide adding at the end the following new subpara- Mr. HARKIN. Further parliamentary how to invest their own money in their graph: inquiry. own children and for their own futures. ‘‘(C) LOOK-THRU RULES FOR PARTNERSHIPS.— Under the rules of the Senate, under In the case of a corporation which is a part- The whole purpose of a $500 tax credit ner in a partnership, such corporation shall the rules of which we are debating this was to allow families to invest their be treated for purposes of this subsection as bill, if someone is recognized, since own money—which after all they holding directly its allocable share of the as- there is no time limit, can that Sen- earned—in the education, housing, nu- sets of the partnership.’’ ator yield time to other Senators for trition, nurturing, and health care of (6) APPLICATION OF PRO RATA DISALLOWANCE purposes other than asking a question? their children. ON AFFILIATED GROUP BASIS.—Subsection (b) The PRESIDING OFFICER. It is my This is what the whole tax debate is of section 265 is amended by adding at the understanding that when there is no about: It was in the Contract With end the following new paragraph: time limit, that each Senator would America and even President Clinton ‘‘(7) APPLICATION OF DISALLOWANCE ON AF- FILIATED GROUP BASIS.— have to get his own time on the bill. has endorsed it. Nobody ever disputed ‘‘(A) IN GENERAL.—For purposes of this sub- Mr. HARKIN. Therefore, a Senator the fact that the purpose here was a section, all members of an affiliated group may only yield for a question; is that clear-cut tax cut to let families decide filing a consolidated return under section correct? how to spend their own money on their 1501 shall be treated as 1 taxpayer. The PRESIDING OFFICER. He could own children. Remember, this is not all ‘‘(B) TREATMENT OF INSURANCE COMPA- yield for a question provided it were a of their money; only $500 per child. NIES.—This subsection shall not apply to an question and not another speech. Out of the Finance Committee has insurance company, and subparagraph (A) Mr. GRAMM. Regular order, Mr. come a provision that says for children shall be applied without regard to any mem- President. ber of an affiliated group which is an insur- 13 to 16, in order to get the tax credit, ance company.’’ Mr. NICKLES addressed the Chair. you have to put it into an education (6) DE MINIMIS EXCEPTION FOR NONFINANCIAL The PRESIDING OFFICER. The Sen- account. And remarkably, it saves INSTITUTIONS.—Subsection (b) of section 265 ator from Oklahoma. money for one, and only one, reason: is amended by adding at the end the fol- Mr. NICKLES. I have completed my because some people will not take the lowing new paragraph: statement. tax credit. ‘‘(8) DE MINIMIS EXCEPTION FOR NON- I ask unanimous consent that Sen- Mr. President, if there has ever been FINANCIAL INSTITUTIONS.—In the case of a ator THURMOND be added as a cospon- an effort to go back on a deal, this is corporation, paragraph (1) shall not apply for sor. it. I think families ought to be able to any taxable year if the amount described in The PRESIDING OFFICER. Without paragraph (2)(A) with respect to such cor- invest in an individual retirement ac- poration does not exceed the lesser of— objection, it is so ordered. count. I think they ought to be able to ‘‘(A) 2 percent of the amount described in Mr. GRAMM addressed the Chair. set aside the money for that purpose. paragraph (2)(B), or The PRESIDING OFFICER. The Sen- But the idea of making them do it is ‘‘(B) $1,000,000. ator from Texas. Government paternalism in its worst The preceding sentence shall not apply to a AMENDMENT NO. 552 form. financial institution or to a dealer in tax-ex- (Purpose: To let families decide for them- So what I am asking that we do is empt obligations.’’ selves how best to use their child tax cred- live up to what we said. I am asking (7) CLERICAL AMENDMENT.—The subsection it) that we give the $500 tax credit and heading for section 265(b) is amended by Mr. GRAMM. Mr. President, I send that we give it for every age of a child striking ‘‘FINANCIAL INSTITUTIONS’’ and in- covered, and that we let that child’s fa- serting ‘‘CORPORATIONS’’. an amendment to the desk and ask for (b) APPLICATION OF SECTION 265(a)(2) WITH its immediate consideration. ther and that child’s mother decide RESPECT TO CONTROLLED GROUPS.—Para- The PRESIDING OFFICER. The what is in their best interest. graph (2) of section 265(a) is amended after clerk will report. I think what we are trying to do here ‘‘obligations’’ by inserting ‘‘held by the tax- The assistant legislative clerk read is dissuade people from taking their payer (or any corporation which is a member as follows: $500 tax credit by playing God with of a controlled group (as defined in section what they are supposed to use that 267(f)(1)) which includes the taxpayer)’’. The Senator from Texas [Mr. GRAMM], for (c) EFFECTIVE DATE.—The amendments himself, Mr. COATS, Mr. NICKLES, Mr. HUTCH- money for. I know the intentions are made by this section shall apply to taxable INSON, Mr. GRAMS, Mr. SMITH of New Hamp- good. I know they were aimed at trying years beginning after the date of the enact- shire, Mr. SESSIONS, and Mr. ABRAHAM, pro- to bring people together. But a deal is ment of this Act. poses an amendment numbered 552. a deal. I have heard everybody here Mr. NICKLES. Mr. President, for the Mr. GRAMM. Mr. President, I ask talk about a budget deal and what the information of all my colleagues, I unanimous consent that further read- President got and what we got and think under the unanimous-consent re- ing of the amendment be dispensed what we agreed to; but we had a deal quest, already agreed to by the leader, with. with the American family. The deal it has been agreed upon that we will The PRESIDING OFFICER. Without with the American family was a $500 vote on this amendment, I believe it objection, it is so ordered. tax credit that the family got to spend. will be the first amendment we will The amendment is as follows: If we were reneging on a deal with vote on at 9 o’clock tomorrow morning. SECTION 1. CHILD TAX CREDIT FLEXIBILITY. the President, oh, people would be Mr. MOYNIHAN. Mr. President, On page 12, line 13, strike all through page jumping up and down screaming, hol- might the Senator from Illinois have 1 13, line 8, and on page 16, line 3, strike all lering, ‘‘But we promised the Presi- minute to comment at this point? through page 17, line 6. dent,’’ or if the Democrats were trying Mr. NICKLES. Certainly. Mr. GRAMM. Mr. President, I have to do something that was not in the Mr. DURBIN. Mr. President, I thank sent this amendment to the desk on be- budget deal, some would say, ‘‘Well, the Senator from New York. half of myself, Senator COATS, Senator the President promised us.’’ This does I will be supporting the Senator from NICKLES, Senator HUTCHINSON of Ar- not have to do with the President. This Oklahoma. He is improving the proc- kansas, Senator GRAMS, Senator SMITH does not have to do with us—it has to ess. I will continue to fight for 100 per- of New Hampshire, Senator SESSIONS of cent. Maybe the day will come when he do with the families of America. Alabama, and Senator ABRAHAM of We are not living up to the deal. This and I can both agree on a way to do it. Mr. NICKLES. I hope so. Michigan. I am going to try to be very is a lousy provision, and it should be Mr. HARKIN. Mr. President, par- brief. I have a couple of my cosponsors removed. I am not saying there are not liamentary inquiry. here who have waited to speak on this good intentions and I am not saying The PRESIDING OFFICER. The Sen- amendment, and I hope we can accom- this is not part of some political deal. ator from Iowa. modate them. We will all try to be I am saying it is an unacceptable provi- Mr. HARKIN. Mr. President, are we brief. sion. It should not be in here. It fails to in morning business? This is a very simple amendment. live up to the deal we made with the The PRESIDING OFFICER. We are For the last 4 years we have been talk- American people, and it needs to come not in morning business yet. We have ing about a $500-per-child tax credit. out.

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00069 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6462 CONGRESSIONAL RECORD — SENATE June 26, 1997 Mr. President, I ask unanimous con- of eleven million teenagers. These families I ask unanimous consent that each of sent to have two letters printed in the will already spend dramatically more than them may have 2 minutes each. RECORD. previously to raise their children. Under the Mr. KERREY. Reserving the right to There being no objection, the mate- bill, they would also begin paying an extra object. $500 in taxes once the child credit is taken Mr. MOYNIHAN. I know they will be rial was ordered to be printed in the away from them. Added together, families RECORD, as follows: with teenagers would face a whopping $1,210 kind and thoughtful and even benevo- CONCERNED WOMEN FOR AMERICA, to $1,640 in extra out of pocket costs. lent remarks. June 25, 1997. Here is how the Gramm motion would op- Mr. KERREY. No. Mr. President, re- DEAR SENATOR: The over 500,000 members erate vis-a-vis the Finance Committee provi- serving the right to object, I would like of Concerned Women for America (CWA), sion. Instead of a $500 per child tax credit for the Senator to be a little more specific. many of whom reside in your state, urge you teenagers, the Finance bill creates a second He said, ‘‘I have a number of col- to pass an unencumbered $500-per-child tax education IRA for teenagers. It mandates leagues.’’ credit for children. that a tax credit worth $500 be placed into an Mr. GRAMM. We have one, two, We strongly oppose the current Senate Fi- education IRA. If the money is not put into three, four; and they will speak 2 min- nance Committee version of the $500-per- the IRA, the $500 is forfeited. The Gramm child tax credit because it requires parents utes each. motion strikes the mandatory language, The PRESIDING OFFICER. Without of teens 13–17 to put their tax refund into an making the IRA optional. In other words, Individual Retirement Account (IRA). This parents who don’t choose the IRA would then objection, it is so ordered. credit was created to give needed tax relief have an unrestricted $500 per child tax cred- Mr. GRAMS addressed the Chair. to American families; it was never intended it. This makes much more sense. Parents are The PRESIDING OFFICER. The Sen- to become a new way for the government to the only ones who should make these deci- ator from Minnesota. tell families how they should and should not sions. The federal government should not Mr. GRAMS. Mr. President, I com- spend their own money. mandate the choice of saving for education mend Chairman ROTH for the great Therefore, CWA urges you to support the over other more pressing needs. There are leadership he has demonstrated in Gramm Amendment. This amendment will many financial needs families must meet bringing this legislation before us. And remove the IRA restrictions and allow par- apart from the worthy goal of saving for edu- I commend Senator GRAMM for this ents of teens to use the child credit for im- cation. mediate needs, such as food and healthcare. amendment tonight. We strongly urge you to vote against the My good friend and colleague from Only families are capable of deciding the Daschle amendment. The amendment dimin- best use of family funds. ishes the value of the $500 per child tax cred- Arkansas, Senator TIM HUTCHINSON, Thank you for your attention to this im- it in several ways. It cuts the amount of $350, and I were freshman Members of the portant matter. The over half million mem- phases it in unnecessarily, exempts teen- House in 1993 when we came together bers of CWA appreciate your support for the agers for five years, and eliminates the tax with Senator COATS of Indiana to de- Gramm Amendment. credit all together for some middle class velop a budget proposal called Family Sincerely, families by drastically lowering the income First that could serve as the taxpayer’s BEVERLY LAHAYE, caps. alternative to the higher taxes and big- Chairman and Founder. If the Gramm motion prevails (and no amendments are passed which would weaken ger Government plan offered by Presi- CHRISTIAN COALITION, the $500 per child tax credit), we certainly dent Clinton. Washington, DC, June 25, 1997. urge you to vote for the tax bill on final pas- The key component of our legislation TAX BILL KEY VOTES sage. If the Gramm motion fails, we regret- was family tax relief through a $500 per VOTE FOR THE GRAMM MOTION TO STRIKE WHICH tably will not be able to support the tax bill child tax credit. WILL QUALIFY TEENAGERS FOR THE $500 PER at this time. We would actively work to add We convinced the House and Senate CHILD TAX CREDIT coverage of teenagers in conference, and re- leadership to make our Families First VOTE AGAINST THE DASCHLE AMENDMENT serve judgment on the conference report bill—with the $500 per child tax credit until it is finalized. We certainly hope that VOTE FOR FINAL PASSAGE IF THE GRAMM as its centerpiece—the Republican in the end, we will be able to support the re- AMENDMENT PASSES budget alternative in 1994. port. That certainly is our goal. For overtaxed American families, DEAR SENATOR: Sen. Phil Gramm and We will select a vote to be included in our many others intend to offer a motion to Congressional Scorecard relating to the $500 1997 looks to be the year this long- strike that will restore teenagers to the $500 per child tax credit. At this time, we can not promised, long-overdue middle-class per child tax credit. We strongly urge you to predict which vote will be selected. Thank tax relief is finally delivered. vote for the Gramm motion. you for your consideration of our views. As you know, working families today Family tax relief in the form of a $500 per Sincerely, need tax relief more than ever. child tax credit has been our highest legisla- BRIAN LOPINA, tive priority since 1993. We are pleased that Factor in State and local taxes and Director, the Finance Committee has included the the hidden taxes that result from the Governmental Affairs Office. credit in the tax bill. However, we cannot high cost of Government regulations, support the bill in its current form. The sin- Mr. GRAMM. Mr. President, I ask and a family today gives up more than gle biggest disagreement we have with the unanimous consent to add Senator 50 percent of its annual income to the Finance Committee version of the $550 per THURMOND as a cosponsor to the Government. So all we are saying is let child tax credit is the exclusion of teenagers. amendment. us let the working people of this Na- Under the bill, only children up to age 12 The PRESIDING OFFICER. Without tion keep a little bit more of their own qualify for the credit. The Gramm motion objection, it is so ordered. money. will restore teenagers to coverage of the $500 Mr. MOYNIHAN. I wonder if my per child tax credit. The $500 per child tax credit proposal Excluding teenagers would be a deep dis- friend from Texas would wish to mod- in the bill before us goes a long way to- appointment for the families of teenagers ify the term ‘‘rotten.’’ ward delivering tax relief to working that struggle to meet the financial pressures Mr. GRAMM. This abrogates the deal families raising children. However, it they must endure during the costly teenage with the working men and women of imposes restrictions that will signifi- years. Indeed, caring for children reaches its America. Some may see it as rotten cantly dilute the purpose of the child most expensive point during these years. The and some may not. Some may see it— tax credit. high cost of teenagers has been well docu- Mr. MOYNIHAN. Surely the Senator The legislation before us tells fami- mented by the Clinton Administration’s re- does not mean it as rotten. cent 1996 report, titled ‘‘Expenditures on lies that, yes, we will give you a tax Children by Families’’ published by the De- Mr. GRAMM. Some may see it as an credit, but if your children are between partment of Agriculture. This report com- acceptable deal and some may see it as the ages of 13 and 16, you are going to pares the cost of food, clothing, health care, a rotten deal. But the point is—I am have to spend it the way Washington housing, child care, education, and transpor- happy to strike the word if it offends thinks it should be spent. In this case, tation by age group. our dear colleague. But I feel strongly it would have to be spent on education. This report documents that teenagers are about it because the tax cut, after all, By mandating how the tax credit must by far the most expensive age group. It con- is about families. That is what it has be spent, we are in effect denying it to cludes that it costs between $710 and $1,140 more to raise a child age 15–17, than it does been about to begin with. teenagers, leaving 11 million children to raise a child age 9–11. I have several of my colleagues here. out in the cold. Cutting off teenagers from the child tax If I could just let them all speak for 2 And if your child is 17 or 18, you do credit would be a double blow to the families or 3 minutes, we would all be happy. not get it at all.

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00070 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6463 Mr. President, I applaud the parents are going to get the $500 tax credit, not Mr. KERRY. Mr. President, could I that take the $500 per child tax credit to say, well, it only applies to people 13 inquire how much the remainder of the and dedicate it to an IRA or their or younger, that if you are older you time is? child’s college education. have to put it into an educational IRA. The PRESIDING OFFICER. There is But that is a decision that belongs I think educational IRA’s are a good approximately a half an hour in total with parents, not with Washington. It idea. I compliment Senator ROTH be- time. is not our place to tell families how cause he has been the champion of Mr. KERRY. I would be very content they can spend their money. IRA’s, but it should be an option. It with that. The family tax relief provisions in should not be mandatory. We should Mr. MOYNIHAN. You have been very the bill before us can be greatly im- allow them to have this choice. I hope patient. We thank you, sir. proved by striking the mandate that a lot of them choose it before age 13. I The PRESIDING OFFICER. That the tax credit be dedicated to edu- think it would be a great idea for a par- would require unanimous consent. cation. I am pleased to be joining my ent, if they can do it, if they can afford Mr. MOYNIHAN. I ask unanimous colleagues in offering this amendment it, to put the $500 into an IRA for their consent that that may occur. to give that choice back to families. child and let that accumulate and do The PRESIDING OFFICER. Without And I urge all my colleagues to support that every year so they have a nest egg objection, it is so ordered. this amendment. for their college expenses. It would be a Mr. BREAUX addressed the Chair. Thank you, Mr. President. positive thing for them and our coun- The PRESIDING OFFICER. The Sen- Mr. HUTCHINSON addressed the try. ator from Louisiana. Chair. But we should not mandate it. Pres- Mr. BREAUX. My friend from Texas The PRESIDING OFFICER. The Sen- ently, under the bill we mandate it for would refer to this provision as the ator from Arkansas. kids that are 14, 15, 16, 17 years old. I ‘‘rotten’’ provision. I am sure what he Mr. HUTCHINSON. Mr. President, I compliment my colleague from Texas meant to say was the ‘‘forgotten’’ pro- also want to commend Senator ROTH. and the cosponsors. vision, because he obviously forgot The $500 per child tax credit is truly I urge my colleagues to vote for this what we did to this in the Finance the heart of this tax relief bill. I espe- amendment to allow parents to choose Committee when we greatly improved cially want to thank Senator GRAMM whether they get the $500 tax credit to it. If anyone wants to have a $500-per- for taking the lead in solving this prob- spend as they choose or whether or not child tax cut, we presume that it is for lem, which is a very serious problem. to put it into an IRA. They should the children. There are 382,000 families in Arkan- make that choice. We should not man- Under the suggestion of the Senator sas who benefit from the $500 per child date it from Washington, DC. from Texas, we would give the family a tax credit, but there are many teen- Mr. SESSIONS addressed the Chair. $500 tax rate to use for whatever they The PRESIDING OFFICER. The Sen- aged children who are excluded because want. If they want to use it to go to ator from Alabama. the casino, fine. If they want to use it of the provision that is in the Finance Mr. SESSIONS. I want to thank Sen- Committee’s bill. I believe parents to buy a six-pack of booze every week, ator ROTH for his outstanding leader- fine. It is about $9.66 a week, so under should have the right to decide. They ship that he has given on this impor- the provision of the Senator from are better arbiters, they are better de- tant issue. But I feel very, very strong- Texas they could take it, put it in their cisionmakers on the use of that money ly that we need to do more for working pocket, and don’t use it for children at than bureaucrats and even lawmakers families. Working middle-class Amer- all—just do whatever you want with it. in Washington, DC. And no matter how ican families today are struggling to good educational savings for teenagers Interestingly, the Citizen Council, a get by. respected voice of both parties, says, may be, it is better to let the parents My youngest son will start college ‘‘In our view, a no-strings child credit make that decision. this fall. But I will tell you, I have is a cruel hoax on the very children I think I will have a hard time ex- children; three of them under age 13 who are supposed to benefit from it. We plaining to those parents of that 13- and three of them over age 13. It costs expect that most of the credits would year-old why, when their child was 12 more for a 14- or 15- or 16-year-old than disappear into the family’s general he was eligible or she was eligible for it does for a 12- or 10-year-old. Anybody budgets, or be used to pay bills’’—and I the $500 per child tax credit, but at the who has raised a family knows that. age of 13 they are not. Perhaps that 13- The demands on those families are add, not for the children, that the tax year-old will have an emergency. Per- fierce today. They are struggling to get credit is supposed to be for. haps that 13-year-old needs braces. Per- by. This is the heart and soul of a fam- What we have done is to craft a com- haps that 13-year-old needs a math ily middle-class tax cut. Many kids promise from zero to 13, the family can tutor to enable that child to ensure will not be going off to college. They use it for anything they would like, no that he or she is ready to go to college will never be going to college. But even strings attached, but from 13 to 17, when they graduate from high school. if they are, many of those families need when children need to be educated, The parents will not have the option, the money now. They have a flat tire there is an obligation that the tax will not have the opportunity, will not and they need to replace a tire. They credit be used to educate the children. have the eligibility under the current need shoes or to go on a school trip. For all of us who want to help children bill. That is why this amendment is so They need to make their own decision and our families and help parents raise important that we ensure that the par- about how to spend their money. those children, what is better than to ents have the ultimate decisionmaking This is important to me. It is impor- give that family help and assistance in authority. tant to American families. I salute educating that child? Forty percent of young people who Senator GRAMM for raising this issue, Some say the Tax Code should not graduate from high school do not go and I am in support of this amendment. tell people what to do. The Tax Code is straight on to college. They should not I yield the floor. full of examples—a mortgage deduction be excluded from the benefits of this Mr. MOYNIHAN. Mr. President, I is only available if you buy a house; a tax bill. Parents should decide, not yield to the Senator from Louisiana charitable contribution is only avail- Washington, DC. such time as he may require. able if, in fact, you give to charity. So I yield the floor. The PRESIDING OFFICER. Under what I think the Finance Committee Mr. NICKLES addressed the Chair. the previous order, the Senator from was able to do was to erect a com- The PRESIDING OFFICER. The Sen- Massachusetts has the floor. promise, a blending of what that sug- ator from Oklahoma. Mr. MOYNIHAN. Would the Senator gestion was coming from this side, Mr. NICKLES. Mr. President, I com- from Massachusetts, who has been Job- blending it with what many of our peo- pliment my colleague, Senator GRAMM. like—he has been No. 2 since 9:30— ple said, use it for educating children. We tried to do this in the Finance Com- would he allow 3 minutes to the Sen- If we are going to have a tax credit for mittee. Unfortunately, we fell a couple ator from Louisiana and 3 minutes to children, let’s at least ensure that part votes short. But the basic principle is the Senator from Nebraska to respond, of the time it is used for one of the we want to tell everybody their kids and the remainder of the time is his? basic functions that a family has as an

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00071 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6464 CONGRESSIONAL RECORD — SENATE June 26, 1997 obligation to those children, and that I hope my colleagues will vote ing which would, indeed, allow those is to educate those children. against the Gramm motion to strike. children to be able to get that credit. So I think that what we have come Mr. MOYNIHAN. I endorse whole- My colleagues on the other side of forward with makes a great deal of heartedly the position that the Sen- the aisle were right when they pro- sense. It is a legitimate compromise. It ators from Louisiana and Nebraska posed a refundable credit. And Speaker adds to the education package which I have stated on behalf of the committee GINGRICH was right when he called the think everyone is for, and it helps fam- bill. I thank them. refundable credit in the Contract With ilies with small children. I yield the balance of our time to the America the ‘‘crown jewel’’ of the con- The PRESIDING OFFICER. The Sen- distinguished Senator from Massachu- tract. ator from Nebraska. setts. As Marshall Wittman, the Legisla- Mr. KERREY. This proposal began in The PRESIDING OFFICER. The Sen- tive Affairs Director for the Christian 1995. I heard the Senator from Texas ator from Massachusetts. Coalition, said, ‘‘Allowing families describe it as a sacred part of the Con- Mr. KERRY. Mr. President, I thank with children to retain a larger share tract With America. the distinguished party manager. I will of their hard earned income will be a In 1995, Senator LIEBERMAN and I in- probably not use all the time but I ask first step toward freeing America’s par- troduced KIDSAVE as a modification unanimous consent that the balance of ents from the national treadmill of to this $500 per child tax credit, and it the time I have be divided between working long hours at the expense of set up a savings account for children. Senator DODD and Senator KENNEDY. time with their children.’’ The Herit- It was mandatory. The idea was that The PRESIDING OFFICER. Without age Foundation endorsed the children’s Americans are not saving enough objection, it is so ordered. tax credit in the contract, which was a money, they are struggling to put aside Mr. KERRY. Mr. President, we just refundable tax credit. savings, and that is especially revealed heard a debate about the $500 tax cred- Mr. President, I am proposing that when you look at one of the most im- it. We heard a number of Senators we adopt the Contract With America’s portant parts of this tax proposal, state what a critical component of the refundable tax credit which would pro- which is the reduction of tax on es- effort to restore families this is and vide 7 million more children with ac- tates. how important it was to the early ef- cess to the credit, to the tax credit. Mr. President, about 1 percent or 2 forts of the contract. The fact is that The simple question is, why would you percent of Americans have estates over the committee bill will deny 38 percent want to deny those people who work— $600,000. It is a provision that affects a of the children in the United States we are not talking about people who relatively small number of Americans. with the lowest incomes access to a tax are solely relying on welfare, or people I appreciate my colleagues on the other credit. In Massachusetts, as a matter who get the earned-income tax credit; side of the aisle saying that is one of of fact, 46 percent of all children would we are talking about two-parent fami- their top concerns, that 1 percent or 2 be excluded from receiving this impor- lies with two children who are working percent of Americans who have estates tant tax credit. That means about and paying taxes, who still will not get over $600,000. KIDSAVE is put together 850,000 children, plus, in my State, will credit the way it has been structured as a consequence of our concern for the not receive a tax credit. under the Republican proposal. These 98 percent of Americans that do not. Now, I ask my colleagues what kind children live in families that pay in- The only way that you will be able, of profamily policy takes $81 billion come or payroll taxes, and payroll particularly for middle-income people, over the next 5 years but completely taxes are a reflection of work. Work, to acquire that wealth is to save a lit- denies this help to the 9.5 percent of all after all, is what we are trying to put tle bit of money over a long period of children in families with the lowest 20 a premium on—both in the welfare re- time. percent of incomes, and denies the tax form bill, as well as, I think, in a $500 So I say we are not breaking any credit to 86.6 percent of all the families credit. deal. We introduced this bill in 1995. It in the second 20 percent of income. My amendment would take the was endorsed at the time by the Herit- I direct my colleagues’ attention to refundability against payroll taxes age Foundation. The only thing that is this chart. These are the percentage of from the Contract With America and it going on here, in my judgment, is the children ineligible for the child tax lowers the income phaseout more slow- Christian Coalition is arguing that this credit, the way it has been structured ly and phases in the credit by the age is a violation of something they want. by the Finance Committee. Fully 99.5 of the child. The reason we phase in the So they are rallying the troops and percent of the lowest 20 percent, and credit and the reason we do the income trying to get it changed. I appreciate 86.6 percent of the children in the sec- difference is to keep this revenue neu- the Senator from Texas does not like ond fifth will not get the benefit of this tral. It is revenue neutral. I want to the proposal, but it was introduced in credit. emphasize, this amendment takes the 1995, and its purpose is to help Ameri- I propose, therefore, a very simple Contract With America payroll provi- cans generate wealth. We know we can- amendment so that working families sions but it remains revenue neutral. not redistribute wealth. We are trying could have access to this credit. My It would seem to me, Mr. President, to enable Americans to create wealth amendment that I will send to the desk that all of us would want to try to find by saving their money. momentarily lets those families whose a way to guarantee that families earn- The $500 child tax credit goes from 0 net Federal taxes are greater than zero ing $110,000 are not going to get a $500 to 17. That is the law. It ends at age 17. get a full or partial children’s tax cred- tax credit, while a family working and I would have preferred 0 to 4, frankly, it, and the amount accomplishes this earning $20,000 gets nothing—nothing. for this thing to go into effect. It was in a very simple way. It makes the That is exactly what happens under a compromise. We agreed to do this as credit refundable to the full extent of this proposal the way it is done. a consequence of the desire to increase the family’s Federal payroll taxes once My credit would begin to phase out the amount of money that Americans it has offset all of the family’s income at $60,000 and it would finish at $75,000. have, not only for education but this tax liability. By doing that, we manage to spread it money, particularly for those that are This refundability, I want to empha- to those people at the lower end of the not going to school, would be better off size, is not my idea. The refundability income scale, most of whose income staying in a savings account until re- was a provision of the Republican’s goes into the payroll tax but who nev- tirement so those individuals can look Contract With America. It was in the ertheless are working and deserve as to their retirement and say in addition child tax credit bill which was spon- much of a break as anybody else. My to having Social Security there for sored by the Senator from Texas, who amendment would allow the bottom 80 them they will have a source of wealth. a few moments ago was talking about percent of American families to get a So in my view, this is an amendment the virtues of providing a $500 tax cred- full or partial credit, and the richest 20 that would deny Americans the oppor- it to children. In fact, Senator COATS, percent would not. A very simple tunity to acquire wealth. I think it is a Senator LOTT, Senator GRAMM and oth- tradeoff. very important provision in this Tax ers on the Republican side supported Mr. President, I think it is critical to Code. the very proposal that I am now offer- understand that the tax bill, as it

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00072 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6465 comes out of the Finance Committee, America earning $18,000 in the lowest can be recognized for up to 10 minutes which we are voting on, that the tax quintile on average, and $30,000 in the to introduce his motion, which would bill credit for children as currently second quintile on average. Look at put it in order for tomorrow, but in no written, most of the children who what happened to payroll taxes during particular order for tomorrow. would be denied the credit or have the that period of time. Payroll taxes in The Senator from Massachusetts is credit reduced live in families who are 1975 were $374 for that family. But, in recognized. working and paying Federal taxes. It is 1985, they were $2,171. In 1995, they were Mr. KERRY. If I could say to my col- just that their tax burden often $2,523. So the payroll taxes went up, league, I had the full amount of time amounts to several thousand dollars, but at the same time in both quintiles under the unanimous-consent agree- even after the effects of the earned-in- and, yet, their income went down and ment. I chose to truncate my remarks come tax credit are accounted for. The they are not going to get the credit. in order to accommodate my colleague claims that these peoples pay no taxes So I respectfully hope that my col- within that. I don’t mean to upset the is simply incorrect. leagues will join in an effort to rectify order. The Joint Tax Committee data issued what I hope is simply an oversight in Mr. COATS. No. Mr. President, I am this week shows that taxpayers with distribution and help to guarantee that perfectly content to let the Senator incomes between $10,000 and $20,000 will every family in America that works, take whatever time he wants. It is this owe an estimated $191 billion in Fed- that is struggling to raise their chil- Senator’s understanding that the unan- eral taxes. Taxpayers with incomes be- dren, can actually have the benefit of imous-consent agreement supersedes tween $20,000 and $30,000 will owe $442 this $500 credit, and that would, I the reconciliation instructions regard- billion in Federal taxes between 1997 think, be deemed a benefit to the Sen- ing time under the agreement. The and the year 2002. These figures from ate and to the country if we were to Senator from Massachusetts can offer the Joint Tax Committee reflect the make that happen. any amount of time he wants to his fact that these taxes are owed after the Mr. President, under the previous colleagues. I am more than willing to EITC benefits are subtracted. agreement, I yield the balance of time wait for that. Mr. President, the vast majority of divided equally to Senator DODD and The PRESIDING OFFICER. We have the taxes that these families pay—we Senator KENNEDY. already ruled that, as far as allocating have to acknowledge, if they are work- The PRESIDING OFFICER. There time to anybody else, there would have ing and they are playing by the rules are 10 minutes left on the Democratic to be a unanimous consent agreement and they are trying to climb up the side. by that particular person who is speak- economic ladder, why should they be Mr. DODD. On the bill? ing; otherwise, the time is up for grabs. denied access to the $500 credit—the The PRESIDING OFFICER. There Mr. COATS. Further parliamentary taxes that they pay consist mostly of are 10 minutes on the proponents’ side. inquiry. That is not my understanding payroll taxes because that is the way Mr. COATS. Parliamentary inquiry, of what the unanimous consent request life is for people at that end of the in- Mr. President. was. The reason I am stating this is come scale. The PRESIDING OFFICER. The Sen- that I specifically asked the majority I hope my colleagues who say that ator will state it. leader if my interpretation was cor- this is a fair way to adjust more appro- Mr. COATS. Mr. President, I don’t rect, and he specifically said yes and priately what has happened in the com- understand why we are allocating time included it in the unanimous-consent mittee mark —I want to emphasize here because in the unanimous-consent agreement. The Parliamentarian may that a two-parent family, the kind of request—I specifically asked the Chair not have heard that. I don’t believe family that most people in the Chris- and asked in the request if the three there is a ruling of that. In any event, tian Coalition or in the Heritage Foun- amendments agreed to under the unan- I don’t want to split hairs. I think ev- dation or others feel have been the imous-consent request were on any erybody will have an opportunity to most hard hit in America in the recent kind of a time limit. The answer was, speak. He doesn’t have to limit the years, a two-parent family with two no, they are not on any kind of a time Senator from Connecticut to 2 min- children with an income of $20,000, limit. utes. He can talk for 20, as I understand under my proposal, would get the full I further raised the statement saying the unanimous-consent agreement. $1,000 credit, $500 for each child under that there are a number of Senators Mr. KERRY. Mr. President, if I can this proposal, which is the contract under the agreement that would stay simply clarify something. But before I proposal. They would not get that beyond the three to offer and discuss do, I will send my amendment to the under the proposal of the Finance Com- their amendments this evening. They desk. mittee. would be allowed to speak for up to 10 AMENDMENT NO. 554 minutes in support of their amend- Mr. President, I think if we are going (Purpose: To allow payroll taxes to be in- to accept the notion that we will pro- ments. I don’t believe we are under a cluded in the calculation of tax liability vide the children’s credit for as many time agreement and that there needs for receiving the children’s tax credit, and working taxpaying families as possible, to be allocation of a time agreement. for other purposes) it is important to change the base and This Senator has not yet spoken on the Mr. KERRY. Mr. President, I send an to guarantee we are reaching those Gramm amendment, which I would like amendment to the desk and ask for its kids. to do. I don’t feel there is any con- immediate consideration. Everybody knows what has happened straint on the amount of time I have to The PRESIDING OFFICER. The to income distribution in America in speak. clerk will report. the last 15 years, how the bottom has The PRESIDING OFFICER. Under The assistant legislative clerk read not been the part of America that has the consent agreement, there was still as follows: grown. I might add, here is a chart that time remaining on the bill. The time The Senator from Massachusetts [Mr. remaining on the bill could be used by shows the percentage of working fami- KERRY], for himself, Mr. CONRAD, and Mr. lies whose payroll taxes exceed their each side presenting their amend- JOHNSON, proposes an amendment numbered income taxes. They are all in the bot- ments. There was an order to the 554. tom three-fifths of America. You have amendments. We are on the third one, Mr. KERRY. Mr. President, I ask 99 percent in the bottom fifth, 97 per- which was the Kerry amendment. Sen- unanimous consent that reading of the cent in the second fifth, and 90 percent ator KERRY was allotted the time on amendment be dispensed with. in the next fifth—all work, all have the proponents’ side, which was 20 min- The PRESIDING OFFICER. Without payroll taxes that exceed their income utes. There is an opponent side of 20 objection, it is so ordered. tax, and, therefore, do not get the full minutes that would be allocated, which The amendment is as follows: would be the majority party side. benefit of the credit. On page 13, beginning with line 9, strike all Finally, I simply point out to my col- Following the expiration of all time, through page 17, line 12, and insert the fol- leagues that income for young working which would be the remaining 38 min- lowing: families has not increased in over 20 utes, then there will be a period for ‘‘(2) LIMITATION BASED ON ADJUSTED GROSS years. These are the young families of morning business where any Senator INCOME.—The dollar amount in subsection (a)

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00073 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6466 CONGRESSIONAL RECORD — SENATE June 26, 1997 shall be reduced (but not below zero) ratably ‘‘(f) OTHER DEFINITIONS.—For purposes of Mr. JEFFORDS. I ask unanimous for each $1,000 (or fraction thereof) by which this section, the terms ‘qualified tuition pro- consent— the taxpayer’s modified adjusted gross in- gram’ and ‘education individual retirement Mr. COATS. Mr. President, I hate to come exceeds $60,000 but does not exceed account’ have the meanings given such be a fly in the ointment here. I have $75,000. For purposes of the preceding sen- terms by section 529 and 530, respectively. tence, the term ‘modified adjusted gross in- ‘‘(g) PHASEIN OF CREDIT.—In the case of been waiting to speak on one of the come’ means adjusted gross income in- taxable years beginning in 1997, subsection three designated amendments in the creased by any amount excluded from gross (a)(1) shall be applied by substituting ‘$250’ unanimous consent agreement, the income under section 911, 931, or 933. for ‘$500’.’’ GRAMM amendment. I have not yet had ‘‘(3) LIMITATION BASED ON AMOUNT OF TAX.— Mr. ROTH. Mr. President, parliamen- that opportunity. My understanding is The aggregate credit allowed by subsection tary inquiry. that further amendments come after (a) (determined after paragraph (2)) shall not these three. I think if we just get exceed the sum of— The PRESIDING OFFICER. The Sen- ‘‘(A) the excess (if any) of— ator will state it. going, we can get this done and get to ‘‘(i) the taxpayer’s regular tax liability for Mr. ROTH. Is it proper to offer an the other amendments. the taxable year reduced by the credits al- amendment under the unanimous-con- The PRESIDING OFFICER. The right lowable against such tax under this subpart sent agreement? to offer amendments is limited to the (other than this section), over The PRESIDING OFFICER. The Sen- managers. The right to speak is not. ‘‘(ii) the taxpayer’s tentative minimum tax ator from Massachusetts, under the Who wishes recognition? for such taxable year (determined without unanimous consent agreement that we Mr. COATS. Mr. President, I would regard to the alternative minimum tax for- like to take just a few moments and I eign tax credit), plus had earlier, is allowed to offer one to- night. will be brief. ‘‘(B) the excess (if any) of— The PRESIDING OFFICER. The Sen- ‘‘(i) the sum of— Mr. KERRY addressed the Chair. ‘‘(I) the taxpayer’s liability for the taxable The PRESIDING OFFICER. The Sen- ator from Indiana is recognized. year under sections 3101 and 3201, ator from Massachusetts is recognized. AMENDMENT NO. 552 ‘‘(II) the amount of tax paid on behalf of Mr. KERRY. Mr. President, it may be Mr. COATS. Mr. President, the hour such taxpayer for the taxable year under sec- that the Senator from Indiana missed is late and the week has been long. We tions 3111 and 3221, plus it, but I asked unanimous consent at all need our rest. I want to take a few ‘‘(III) the taxpayer’s liability for such year moments to speak in support of the under sections 1401 and 3211, over the opening of my comments, when I ‘‘(ii) the credit allowed for the taxable year was yielded the full amount of time, GRAMM amendment, the amendment we under section 32. that the balance of time that I didn’t discussed just before the discussion of ‘‘(c) QUALIFYING CHILD.—For purposes of use be divided equally, and that con- the KERRY amendment. this section— sent order was entered into. I might The reason I want to speak in favor ‘‘(1) IN GENERAL.—The term ‘qualifying add, if the Senator was correct, it was of the GRAMM amendment is that, as child’ means any individual if— all of our understanding that after the someone who has been an original ‘‘(A) the taxpayer is allowed a deduction sponsor and long-time proponent of the under section 151 with respect to such indi- expiration of all the time on the bill, vidual for the taxable year, the Senate would go into morning busi- child tax credit, we were surprised— ‘‘(B) such individual has not attained the ness, during which time Senators first of all, we were delighted when, applicable age as of the close of the calendar would have the opportunity to speak first, the President, and then the Budg- year in which the taxable year of the tax- for as long as they wanted. So there is et Committee endorsed the concept of payer begins, and not in effect a time limitation with re- the $500-per-child tax credit. It is long ‘‘(C) such individual bears a relationship to spect to the after period of the bill. overdue. It is only a partial step in the taxpayer described in section 32(c)(3)(B). The PRESIDING OFFICER. A clari- remedying an inequity that has existed ‘‘(2) APPLICABLE AGE.—For purposes of paragraph (1), the applicable age is 13 in cal- fication on that. The consent order did for a long, long time, in terms of giving endar year 1997, and increased by 1 year for call for 10 minutes per person in morn- families the ability to provide for their each of the next 4 succeeding calender years. ing business. children. ‘‘(3) EXCEPTION FOR CERTAIN NONCITIZENS.— Mr. KERRY. Well, Mr. President, I Way back in the 1940s, Congress de- The term ‘qualifying child’ shall not include have been informed that Senator KEN- cided that raising families and raising any individual who would not be a dependent NEDY now does not wish to use his children was a good thing. They pro- if the first sentence of section 152(b)(3) were time. I ask unanimous consent that the vided a dependents exemption for that applied without regard to all that follows balance now go to Senator DODD, at purpose. They did not index it for infla- ‘resident of the United States’. tion. And over the years, because it ‘‘(d) TAXABLE YEAR MUST BE FULL TAX- which point it would revert to the ABLE YEAR.—Except in the case of a taxable other side. was not indexed for inflation and be- year closed by reason of the death of the tax- The PRESIDING OFFICER. The Sen- cause it was not raised by an act of payer, no credit shall be allowable under this ator from Indiana and those on this Congress, the value of that particular section in the case of a taxable year covering side have up to 20 minutes following exemption decreased—that is, the de- a period of less than 12 months. the 81⁄2 minutes of the Senator from pendents exemption. Now, we finally ‘‘(e) RECAPTURE OF CREDIT.— doubled that exemption, and now index ‘‘(1) IN GENERAL.—If— Connecticut that will be allocated ‘‘(A) during any taxable year any amount under the unanimous-consent agree- it, after the 1986 tax law. But it was is withdrawn from a qualified tuition pro- ment. The Senator from Connecticut is still a third to a fourth of what it gram or an education individual retirement recognized for up to 81⁄2 minutes. should have been if it had maintained account maintained for the benefit of a bene- Mr. DODD. Mr. President, rather pace with the cost of raising children. ficiary and such amount is subject to tax than confuse this situation even fur- So families were squeezed and fell fur- under section 529(f) or 530(c)(3), and ther, I am going to yield for the pur- ther and further behind other special ‘‘(B) the amount of the credit allowed poses of offering an amendment to the interests that were granted benefits in under this section for the prior taxable year was contingent on a contribution being made distinguished Senator from Vermont. the Tax Code. to such a program or account for the benefit It is his amendment, and I am a co- We finally focused on the importance of such beneficiary, sponsor with him. I yield for that pur- of raising children and the importance the taxpayer’s tax imposed by this chapter pose. I ask unanimous consent that I of families and the importance of pro- for the taxable year shall be increased by the may yield for that purpose. viding support for the family. I am lesser of the amount described in subpara- The PRESIDING OFFICER. The Sen- pleased that we are here discussing the graph (A) or the credit described in subpara- ator doesn’t have the right to offer an $500 tax credit. I am pleased that the graph (B). amendment under this agreement. chairman of the Finance Committee ‘‘(2) NO CREDITS AGAINST TAX, ETC.—Any in- Only the managers can offer amend- incorporated the $500 tax credit in crease in tax under this subsection shall not ments under the agreement, until we their mark. But I rise in support of the be treated as a tax imposed by this chapter Gramm amendment because, in doing for purposes of determining— get into the period for morning busi- ‘‘(A) the amount of any credit under this ness, at which time— so, a provision was made whereby the subpart or subpart B or D of this part, and Mr. DODD. I ask unanimous consent credit would only be available up ‘‘(B) the amount of the minimum tax im- that I be allowed to offer an amend- through the age of 12. At that point, posed by section 55. ment. the credit was available, but it was

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00074 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6467 conditioned on the fact that the money the funds to accumulate for college, money at the casino almost defies be- be put into an education savings ac- would not take the $500 tax credit and, lief. count. therefore, are a savings. I hope that is Who do we trust here? Do we trust Now, it is ironic that, at the very not the motivation. I don’t think it the parents? Do we trust the family? I time when the cost of raising children was the motivation, but that may be am sure there will be examples. You takes a dramatic jump, we take away the unintended result. So we have a can pick up the paper and read about the ability of parents to use that credit situation here where, ultimately, what some wayward father who took the tax to pay for expenses related to those we come down to is that either the par- credit and went down to the casino. children. ents are going to decide how to use the Sure, that will happen. But that As this chart shows, entitled ‘‘An- funds on the child tax credit in the best doesn’t begin to describe the average nual Child Rearing Costs; Children interest of their children, or the Senate American family who cares about their Ages 0 to 17,’’ there is roughly a $7,850 Finance Committee will decide. children, who want the best for their cost per child for children, ages 0 to 2. Once again we continue the practice It jumps to over $8,000 for children, of Government knows best—not father children, and are in the best position to ages 3 to 5. It goes to nearly $8,200 for knows best, not mothers know best, make the decision as to how that children, ages 6 to 8. And it stays about not family knows best, but Govern- money ought to be spent. that level through the age of 11. But at ment knows best. We will tell you how So I am a strong supporter of the the age of 12—at no surprise to any par- you should spend or save money for Gramm amendment. I think that we ent in this room, or any parent trying your child. We will determine that it ought to modify this. Whether this is to raise young children—there is a dra- can only be used for one purpose. You put together to create a deal—it is a matic increase in the cost per child have to continue a secondary edu- lousy deal. I won’t call it a rotten deal. when you hit the ages of 12 to 14, and cation—a noble goal, a worthy goal, It is a lousy deal, and the wrong way to it continues to 15 to 17. Why is that? It and one that I think we want to hold allocate these resources. Let’s leave is because no longer are you able to out as an option. But it should not be that decision in the hands of the par- tell your children that the $5 Kmart a mandate. It should not be limited to ents and not in the hands of the Gov- tennis shoes are good enough to wear that particular goal. ernment. to school. All of a sudden, they dis- There are a lot of families in this cat- Mr. SESSIONS. Mr. President, will cover the Michael Jordan tennis shoes, egory that have expenses for their chil- the Senator yield for a question? and it is now $140 a pair. All of a sud- dren at the ages of 13, 14, 15, and 16 that den, the dentist says it is time that are more critical than forcing them to Let’s imagine a single mother who is you saw an orthodontist, because if you put the money into a savings account. teaching school with three children want your child to have straight teeth, Hopefully, they will be in a financial ages 17, 15, and 12 hoping to save money this is the time. The baby teeth are position, if we think they can put the for college and just getting by. The gone, the new teeth have come in, and money into a savings account. Again, I transmission breaks on the car, and we all want our kids to have perfect say it is a worthy goal. But it ought to there is a $400 bill. Who should decide smiles. Some might be for cosmetic be an option to those parents. It who ought to spend that money? The reasons, and many might be for a mis- shouldn’t be a mandate. We should not Members of this body, or that mother? aligned jaw or an overbite, and so have a Government entity—whether it Mr. COATS. Maybe that mother forth. And clothes begin to cost more. is an elected Government entity or a needs that car to get to work so she Kids start thinking about the opposite nonelected Government entity—mak- can continue to make money so she sex. So that involves the thought of be- ing a decision as to how that money can send her children to school, but we ginning to date and, suddenly, you are should be used. will be effectively telling her, ‘‘You buying movie tickets and, suddenly, It is almost humorous to say we can’t fix that transmission.’’ We will they are going out for burgers, et know better about how a mother and tell that mother, ‘‘You can’t use that cetera. It is no surprise to any parent father ought to spend money for their money to buy a computer because that that is the point in time which child than they do, that we know their maybe your child needs special tutor- the cost really escalates, particularly family situation better, we know their ing.’’ And, ‘‘You can’t buy a software when they get into the 15 to 17 age education situation of their children program to give that child better math range. Then they are starting to work better, we know their future plans bet- tutoring so they will be able to go to after school and they need transpor- ter than the family knows its own college. You can’t use that money for tation. Heavens, what an embarrass- plans. that. You can’t use that money to hire ment it would be to have to ride the So, as well-intended as this mark in a learning center or some other organi- school bus. You need a car, et cetera, the Finance Committee package might zation to help your child prepare for et cetera. There are a lot of necessary be, I think that the amendment of the the SAT’s so that they can get into costs at this particular time, also. Senator from Texas makes perfect college. No. You have to do what the At that very time when it costs sense because it simply says if you Finance Committee says. The Finance more, the Finance Committee has said, want to do that with a $500 tax credit, Committee says you have to put it in ‘‘We recognize that it costs more, but fine, you can do that. We will allow an education savings account.’’ you can’t use the money for anything you to set up an education savings ac- except the purpose we deem is accept- count. I just think it is wrong. As I said, it able.’’ One of the first bills I introduced may be well intended and well moti- Now, it is a worthy thing to begin to when I came to Congress a long time vated, but the consequences are such save money for college, for secondary ago was an education savings account. that I don’t think we have thought education, but not all children go to I think it is a worthy goal, a worthy these things through. college. In fact, apparently, a large idea. But if you deem that there are That is why the amendment of the percentage don’t go to college. So the other purposes more appropriate, then Senator from Texas ought to be sup- education savings account that is we will allow you to do that also. ported. begun or is mandated at the age of 13— To suggest that at the age of 13 sud- I thank my colleague from Alabama they must use the child credit for that. denly the 13-year old is given the for his contributions. I think that serves a purpose that we money and the parents are going to should not support. say, ‘‘I am going to take the money Mr. President, I yield the floor. Now, some have suggested that the and go down to the casino,’’ like the The PRESIDING OFFICER. There reason all this was done was to make Concord Coalition suggested—talk are approximately 8 minutes left on the budget numbers balance, that it about arrogance. Talk about an arro- the debate. was to save money because those fami- gant conclusion; that is, that parents lies that would not send their children don’t care about their kids, that they Mr. JEFFORDS addressed the Chair. to college, or didn’t have plans to send are either going to spend the money on The PRESIDING OFFICER. The Sen- their children to college, or didn’t have beer or they are going to spend the ator from Vermont.

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00075 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6468 CONGRESSIONAL RECORD — SENATE June 26, 1997 Mr. JEFFORDS. Mr. President, may and afford to receive the care that will any standards—what those standards I make an inquiry? Is it in order for me be safe and provide their children with must be. With this amendment we just to ask unanimous consent to offer my a better chance for healthy develop- try to create incentives so that child amendment at this time? ment. That will be required if we ex- care settings will get some encourage- The PRESIDING OFFICER. The Sen- pect to have a skilled workforce in the ment to improve quality. ator may ask. new world of the future. Let me just enumerate what some of I have been authorized to object. What we are trying to do here is to those incentives are. CHILD CARE balance the need to reduce the deficit We expand the tax deductions for Mr. JEFFORDS. We will discuss the and get the budget under control, with businesses who contribute educational amendment which we will be offering the need to improve the quality of equipment and supplies to public child on the floor at the appropriate time. child care for all children who must use care providers. Mr. President, it is difficult to find it. Keeping in mind the funds that are We provide tax incentives to families high quality child care that is appro- available. We have offsets to pay for who seek out higher quality care, real- priate, affordable, and convenient for this child care amendment, which I izing that such care is more expensive. children today. How government can think are very appropriate. Let me step back, if I can, for a help parents achieve that goal is a very I yield to the Senator from Con- minute. difficult and compelling question. I necticut for a further explanation. Mr. President, earlier this year, na- have, with my cosponsors Senators Mr. DODD. Mr. President, first of all, tional magazines had cover stories on DODD, ROBERTS, KOHL, SNOWE, LAN- I want to commend my colleague from early childhood development. We now DRIEU, and JOHNSON put together an Vermont. This is an amendment which know that in the earliest stages of a amendment which we will be offering. will be offered by the distinguished child’s life—zero to 36 months—it is ab- On the one hand the amendment will Senator from Vermont, along with my- solutely critical that they be nurtured make it easier to find better child care self, Senator ROBERTS of Kansas, Sen- and cared for so that they can develop that is more affordable. At the same ator KOHL of Wisconsin, Senator LAN- to their fullest potential. We’ve all time the amendment does some engi- DRIEU, Senator SNOWE, Senator JOHN- heard by now about how the synapses neering by making it possible for more SON, and others. in the brain of a child are formed child care facilities and individual pro- Mr. President, this is a modest pro- —1,000 trillion of them just in those viders to improve their services and re- posal that is designed to do what all of earliest years. Now we have scientific ceive higher tax deductions for those us agree needs to be done. evidence of how important it is to read efforts. My amendment also to shifts We have provided over the last num- to children, to hold children, and to the amount of money that is available ber of years some significant support play with children in order to wire to parents in the child care tax credit for child care in this country. For ex- their brains for the skills they’ll need and the dependent care assistance pro- ample, there is the Child Care Develop- later. gram to help them afford a better qual- ment Block Grant program which Sen- Obviously, the best caretakers of ity of care they may now be available ator HATCH and I authored back in the children are loving parents. That is the to them. This combination of assist- mid-1980’s. There is also the Head Start best child care—be cared for by pre- ance for providers and parents will en- program, which has been very, very pared parents. No one can argue courage that the child care facilities helpful to so many families in this against that. But we also know that and individual providers will provide country in providing a positive learn- there are a lot of these parents who better care for the 12 million children ing environment for children. There is can’t be there all day with their chil- who are in child care. also the current child care tax credit. dren. How we accomplish this is: First of All of these are designed to provide as- So what do we do to proximate that all, to help middle- and low-income sistance to those families today who caring, prepared parent situation when families, the amendment increases the are trying to juggle the very difficult the parent is unable to be there? What level of income which qualifies for the task of providing an income for their are we trying to do? Do we leave the maximum amount of the child care tax families and also a safer environment situation to chance and say to parents, credit benefits $10,000 to $20,000. We for their children. ‘‘Good luck. Do what you can. Hope- make the child care tax credit refund- Good quality child care can no longer fully you can find the kind of care you able for low-income working families be considered a luxury. There are 13 would provide if you were there.’’ That who qualify for the EITC. Then we go million children every day in this is a difficult statement to make to par- to the other end of the scale and phase country who are placed in child care ents since we all understand that not the tax credit down, but not out, for settings. There are an awful lot of sin- every setting is a safe one or a healthy wealthier people with incomes over gle parents out there raising families. one, that in fact there are vast dif- $70,000, then we can pay for the in- There are two-income families that are ferences in the quality of child care. creases at the lower end. providing for their children. These Rather than applying any rigid I also feel strongly that it is impor- families want to be sure that their standards here, however, we will leave tant to assist those businesses that are children are in a safe place. to the States and to communities to providing child care for their employ- We have done a great deal to help decide what works best. And then we ees. The amendment creates an incen- families with the affordability of child provide the tax incentives to busi- tive which will allow businesses to re- care. We have done a lot to increase nesses to contribute equipment and ceive a 50 percent tax credit for up to the availability of child care. supplies to help to improve the quality $150,000 in expenses to operate, im- What Senator JEFFORDS, Senator child care. We provide the incentives to prove, and develop appropriate child ROBERTS, Senator KOHL, myself, Sen- those parents who seek out quality care for their employees. ator SNOWE, Senator LANDRIEU, Sen- child care because it can cost a bit As we all know from recent studies, ator JOHNSON, and others are trying to more. In doing all this we will hope- the healthy development of children do is to use the Tax Code to try to do fully encourage other child care pro- can very dramatically enhance, includ- a better job of dealing with quality. viders to improve their own quality ing their potential for future edu- I want to be very clear that there is and to ultimately raise the levels of cational and social achievement, de- nothing in this amendment which sets quality around the country. pending upon the kind of nurturing and national standards for quality—as our With this amendment we also make affection they receive early in life, and colleagues over the years have had the child care tax credit refundable be- the developmental and educational ac- some serious reservations about set- cause we realize that as we go from tivities they are exposed to at birth. In ting national child care quality stand- welfare to work that we are going to order to make sure that kind of care is ards. This amendment simply defines a have a lot of these poorer families out available for those children who need quality setting as one that meets there who are going to have difficulty to be in child care while their parents standards or certification set by affording quality child care. work. This amendment provides the States, local governments or private, Refundability is critical—if we only necessary incentives so they can find non-profit entities—we don’t specify provide tax credits to those who pay

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00076 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6469 taxes, then we miss helping a lot of sidered and agreed to en bloc: first, SEC. . SENSE OF THE SENATE REGARDING TAX TREATMENT OF STOCK OPTIONS. these poorer families who can truly use MCCAIN-LEVIN: Sense of the Senate re- garding stock options with a state- (a) FINDINGS.—The Senate finds that— the assistance. (1) currently businesses can deduct the It is certainly a lot more expensive ment; 2. ENZI: Sense of the Senate re- value of stock options as a business expense to provide child care than it is to pro- garding estate tax with a statement; 3. on their income tax returns, even though the vide welfare in most States. So as peo- DODD: Forgiveness of student loans; 4. stock options are not treated as an expense ple move from welfare to work, do we GRAMS: Exception to UBIT for chari- on the books of those same businesses; and want them leaving kids in the street, table giving; 5. DORGAN: Disaster relief. (2) stock options are the only form of com- where hopefully a neighbor or someone 6. DORGAN: IRA withdrawal for disaster pensation that is treated in this way. else is around to keep an eye on them, relief; 7. BIDEN: Survivors’ benefits/pub- (b) SENSE OF THE SENATE.—It is the sense or should they be in a quality environ- lic safety officials; 8. DODD-D’AMATO: of the Senate that the Committee on Fi- Disability benefits for firefighters and nance of the Senate should hold hearings on ment? I think all of us agree they the tax treatment of stock options. should be in a quality environment and officers; 9. BOXER: Section 401(k) and Mr. McCAIN. Mr. President, I am one that their parents hopefully can af- employer stock; and No. 10. DASCHLE: pleased to join my colleague from ford. Non-Amtrak States. I urge their adop- Michigan, Senator LEVIN, in offering Senator JEFFORDS has provided us tion. an amendment regarding the current with a way to reach this goal by using In addition, I ask that amendment double standard employed by corpora- the Tax Code. It is not a direct appro- 553 be called up and agreed to. tions today in accounting for stock op- priation. We realize how difficult it is Mr. COATS. Mr. President, reserving tions. to get funding for child care programs. the right to object— The PRESIDING OFFICER. Is there The amendment expresses the sense Through the largess of our membership objection? of the Senate that hearings should be here over the last number of years, we Mr. COATS. Reserving the right to held on S. 576, a bill sponsored by Sen- have increased the child care block object— ator LEVIN and myself. grant to $1 billion. That amount of The PRESIDING OFFICER. The Sen- S. 576 would close a tax loophole by money, but it does not even approxi- ator from Indiana. requiring companies to treat stock op- mate the demand. And only 4 percent Mr. COATS. I am only inquiring from tions granted as compensation to em- of that total amount is there for qual- the standpoint that I am a little lost ployees as an expense for bookkeeping ity—hardly enough, really, when you again on procedure. How much time is purposes, if they want to claim this ex- think of the tremendous increase in de- left under the bill? Because I would pense as a deduction for tax purposes. mand for child care that is now going like to respond to the arguments on The bill protects average workers by to occur across the country as a result the amendment of the Senator from exempting companies from the require- of the enactment of welfare reform. Vermont. ments of the amendment if they pro- This proposal is designed to provide The PRESIDING OFFICER. There vide stock options to substantially all incentives to businesses to set up qual- are 3 minutes remaining on the bill. If of their employees, with more than ity child care center and to families to the Senator will wait until the 3 min- half the stock options going to non- seek quality care. We pay for this by utes have expired, then he can have up management personnel and not more making minor adjustments for those to 10 minutes in his own right. receiving the tax credit at the highest Mr. COATS. Further reserving the than 20 percent going to a single em- income levels by reducing the credit right to object, I asked relative to the ployee. The bill does not require a par- progressively by 1 percent, but never unanimous consent request of the Sen- ticular accounting treatment; that de- going below a credit of 10 percent of al- ator from Delaware. I just wanted to cision is left to the company. It simply lowable expenses. So by just adjusting make sure it didn’t include—maybe I requires companies to treat stock op- the benefit a bit we can provide the re- misunderstood, but it didn’t include a tions the same way for both accounting sources here to promote quality. request to go immediately to those and tax purposes. I urge our colleagues’ support. This is amendments. The Joint Committee on Taxation going to need 60 votes, and that is a The PRESIDING OFFICER. These provided an estimate of the revenue hard number to reach, but we ought to are amendments on which there ap- that is being lost because of this tax be doing everything we can to improve pears to be agreement on both sides of loophole. If this loophole is not closed, the quality of child care. This ought the aisle. over the next 10 years, from 1998 to not to be a partisan debate. We have Mr. COATS. To be accepted en bloc. 2007, the U.S. Treasury will lose $1.6 come up with an offset. We pay for this Mr. ROTH. I asked they be— billion. That’s real money that could with minor adjustments to the Tax Mr. COATS. I withdraw my reserva- be used to reduce our ever-increasing tion. Code. This is a bipartisan amendment. $5.4 trillion national debt. The PRESIDING OFFICER. If there With my colleagues from Vermont, A great deal of attention has been fo- is no objection, the clerk will report Kansas, from Maine, from Louisiana, cused recently on the outrageously the amendments en bloc. high levels of executive compensation from Wisconsin and South Dakota, we The legislative clerk read as follows: have come up with a good proposal paid by some companies. The New York The Senator from Delaware [Mr. ROTH] Times printed an article on March 30, that we think meets the concerns that proposes amendment No. 556 for Mr. MCCAIN, some have raised and still provides a 1997, that listed the compensation lev- amendment No. 557 for Mr. ENZI, amendment els of several top corporate executives way to ensure through the Tax Code No. 558 for Mr. DODD, amendment No. 559 for in 1996. For example: that child care is not only available Mr. GRAMS of Minnesota, amendment No. 560 and affordable but also high quality. for Mr. DORGAN, amendment No. 561 for Mr. IBM’s Chairman, Louis V. Gerstner, Jr., re- And so, at the appropriate time, Mr. DORGAN, amendment No. 562 for Mr. BIDEN, ceived a compensation package worth $20.2 President, when the amendment is of- amendment No. 563 for Messrs. DODD and million. D’AMATO, amendment No. 564 for Mrs. General Electric gave its Chairman, John fered by the distinguished Senator BOXER, and amendment No. 565 for Mr. F. Welch, Jr., a package worth $30 million. from Vermont, we would urge our col- DASCHLE. And Michael Eisner, Chairman of Walt Dis- leagues to be supportive. The PRESIDING OFFICER. If there ney Corporation, got $8.7 million in salary The PRESIDING OFFICER. The Sen- is no objection, the amendments are and bonuses, plus stock options worth $181 ator’s time has expired. considered and agreed to en bloc. million in today’s market—the largest single Mr. DODD. I thank my colleague grant in corporate history, according to the The amendments considered and article. from Vermont. agreed to en bloc are as follows: Under current law, corporations can AMENDMENT NOS. 556, 557, 558, 559, 560, 561, 562, 563, AMENDMENT NO. 556 564, AND 565, EN BLOC, AND 553 easily hide these multimillion dollar (Purpose: To express the sense of the Senate Mr. ROTH addressed the Chair. that the Finance Committee should hold executive compensation plans from The PRESIDING OFFICER. The Sen- hearings on the tax treatment of stock op- their stockholders or other investors. ator from Delaware. tions) That is because the stock options that Mr. ROTH. I ask unanimous consent On page 267, between lines 15 and 16, insert make up a large and increasing portion that the following amendments be con- the following: of these packages need not be counted

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00077 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6470 CONGRESSIONAL RECORD — SENATE June 26, 1997 as an expense when calculating com- claiming the value of stock options have worked hard their entire life pany earnings. granted to employees as a deductible building up a small business or a fam- Simply put, if a company pays $100 to expense on their taxes. The Wall Street ily farm only to have their children see an employee as salary, that $100 is de- Journal article states that companies it disappear in order to pay the Federal ducted from the company’s total prof- saved hundreds of millions of dollars in death taxes. The death tax discourages its. That seems logical. But if a com- 1996 taxes because of this loophole: thrift and pierces the very heart of the pany gives that same employee 100 dol- Microsoft saves $352 million. American economy—small businesses. lars’ worth of stock options as part of Intel saved 196 million. Mr. President, small businesses are their compensation package, the com- Disney Corporation saved $44 million. the backbone of the American econ- pany’s total profits are unaffected. And No other type of compensation can be omy. The simple fact is that most busi- the actual value of those stock options treated as an expense for tax purposes, nesses in this country are small busi- 1 may very well increase several fold without also being treated as an ex- nesses. Out of the nearly 5 ⁄2 million employers in this country, 99 percent over time. pense on the company books. This dou- are businesses with fewer than 500 em- Stock options given as compensation ble standard is exactly the kind of in- ployees. Almost 90 percent of those to company employees are simply men- equitable corporate benefit that makes businesses employ fewer than 20 em- tioned in a footnote in the annual re- the American people irate and must be ployees. Since the early 1970’s, small port to shareholders—which, by the eliminated. If companies do not want way, is a much-needed yet inadequate businesses have created two out of to fully disclose on their books how every three net new jobs in this coun- change in the accounting rules re- much they are compensating their ex- quired by the Federal Accounting try. This remarkable job growth con- ecutives, then they should not be able tinued even during periods of slow na- Standards Board starting this year. to claim a tax benefit for it. The result is the shareholders are given tional growth and downturns when S. 576 would end an inequitable cor- most large corporations were an inflated picture of the company’s porate subsidy and restore fairness in downsizing and laying off workers. profits, and the top executives can take the treatment of stock options. It Small businesses employ more than credit for those artificially inflated would provide an additional $1.6 billion half of the private sector workforce profits. in deficit reduction by closing this cor- and are responsible for producing An article in the Wall Street Jour- porate tax loophole. roughly half our Nation’s gross domes- nal, dated January 14, 1997, stated The amendment Senator LEVIN and I tic product. By punishing small busi- these new rules could reduce some are offering today is intended to urge nesses, the Federal death tax stifles companies’ annual earnings by as much full and open hearings on this issue. In- our economy, discourages ingenuity, as 11 to 32 percent. Yet, the required dustry will have an opportunity to ex- and threatens the economic security of footnote could be overlooked by all but press their views and explain their op- many of our families. the most astute of stockholders. position to S. 576. I urge my colleagues The Federal death tax also tears at One might reasonably ask how an ar- to vote for the amendment, and I look the bonds that unite parents and chil- cane accounting rule could have such a forward to the hearings. dren and families and communities. large effect on the bottom line of cor- At the appropriate place in the bill, insert The family business has historically porations. The answer lies in the the following: been one of the primary means for chil- growth and value of stock options as a SEC. . SENSE OF THE SENATE ON ESTATE dren to learn skills and virtues that means of executive compensation. TAXES. help throughout their entire lives. Stock option plans in 1996 accounted (a) The Senate finds that whereas— Many of the small business in Wyo- for almost 45 percent of total executive (1) The Federal estate tax punishes hard ming are ranches and farms, and I compensation at 56 of our Nation’s working small business owners and discour- know many of the hard-working men largest corporations, an increase of 5 ages savings and growth; and and women in Wyoming who run these (2) The Federal estate tax imposes an un- percent in just 1 year. The portion of family ranches and farms. The whole compensation made up of actual cash fair economic burden on small businesses and reduces their ability to survive and com- family pitches in to harvest the crops, salary declined by 5 percent in just 1 plete with large corporations; and feed the livestock, mend the fences, fix year. (3) A reduction in Federal estate taxes for the irrigation ditches, plow the roads, At the same time, the value of stock family-owned farms and enterprises will help herd the sheep and cattle, and plan for options increased dramatically as over- to prevent the liquidation of small busi- next year’s yield. Children learn that all market performance soared in the nesses that strengthen American commu- hard work and responsible planning are last few years. The New York Times nities by providing jobs and security; necessary ingredients for success in piece cited earlier also estimated the (b) It is the Sense of the Senate that— (1) The estate tax relief provided in this work as in life. They learn respect for future value of stock options to those the land that is their livelihood. They top executives, based on the most like- bill is an important step that will enable more family-owned farms and small busi- learn to appreciate the labor of their ly time the options would be exercised. nesses to survive and continue to provide parents and grandparents and they re- The most impressive gain would be re- economic security and job creation in Amer- alize their own labor is an investment alized by Mr. Eisner, whose $181 million ican communities; and in their future and the future of their in Disney options received last year (2) Congress should eliminate the Federal children. would be worth $583.7 million in 2007. estate tax liability for family-owned busi- I myself ran a small family owned Yet, if any Disney shareholder looked nesses by the end of 2002 on a deficit-neutral shoe store in Gillette, WY. We didn’t at the annual report, all they will find basis. have a separate division for merchan- is a footnote about the value of stock Mr. ENZI. Mr. President, I rise to dising and marketing. We didn’t have options granted to Mr. Eisner and offer a sense of the Senate amendment an accounting department to sort out other top executives. The bottom line— that calls for a repeal of the Federal es- the complicated Tax Code. We all wore the profit statement—will be over- tate tax on family owned businesses by many hats. We had to sell the shoes, stated by at least $181 million. 2002. I commend Chairman ROTH and balance the books, keep track of our Why shouldn’t the true value of Mr. the Finance Committee on the progress inventory, and straighten out the Eisner’s compensation package be in- they have made by increasing the es- shelves. Let me tell you that we all cluded in calculating Disney’s earn- tate tax exemption for individuals and learned to pitch in to get the job done. ings? How can stockholders evaluate by excluding the first $1 million family We learned to work together and we the true value of executive compensa- owned businesses from Federal death learned to appreciate the hard work tion if the value is just buried in a tax liability. I look forward to working and sacrifices each of us made to keep footnote somewhere in the annual re- with my colleagues toward repealing the store running smoothly. We also port? the death tax on family businesses. learned firsthand the importance of I recognize that there is a serious op- I introduce this resolution because I living by the golden rule. If you don’t position to S. 576 in the business com- believe there is still much work to be treat your customers well in the retail munity. And I fully understand why. done. The Federal death tax on family business they don’t forget. This is espe- Companies save millions every year by owned business tax punishes those who cially true of folks in small towns

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00078 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6471 where there are always a few people (b) CERTAIN STUDENT LOANS THE REPAY- sions will also assist families in meet- who remember what you did as a kid MENT OF WHICH IS INCOME CONTINGENT.— ing the costs of higher education. and who can even tell you stories about Paragraph (1) of section 108(f) is amended by But there is a great deal missing. your parents and grandparents. The joy striking ‘‘any student loan if’’ and all that Most notably, the President’s proposal follows and inserting ‘‘any student loan if— to support lifelong learning through a is, they also remember you when you ‘‘(A) such discharge was pursuant to a pro- treat them well. The family owned vision of such loan under which all or part of $10,000 tax deduction for tuition. This business is an important medium the indebtedness of the individual would be tax relief is critical to America’s fami- through which we pass on our heritage discharged if the individual worked for a cer- lies and others pursuing higher edu- from one generation to the next. tain period of time in certain professions for cation beyond the first two years. Con- Mr. President, our Tax Code rep- any of a broad class of employers, or tinuing education is vitally important resents our tax policy and we should be ‘‘(B) in the case of a loan made under part for nurses, teachers, technical workers ashamed at a code which punishes fam- D of title IV of the Higher Education Act and others. Yet this package does little ilies and stifles our economy. Every 1965 which has a repayment schedule estab- for them to assist in these efforts. The year our Tax Code forces thousands of lish under section 455(e)(4) of such Act (relat- Democratic alternative rightly re- ing to income contingent repayments), such families to sell their businesses just to discharge is after the maximum repayment stored this critical benefit. pay the repressive Federal death tax. It period under such loan (as prescribed under In addition, few of these tax advan- is time we correct this injustice by pro- such part).’’ tages go to the neediest students and viding meaningful relief for America’s (c) EFFECTIVE DATE.—The amendments their families, despite the fact that families and their small businesses. I made by this section shall apply to dis- this is the group with the most limited commend the chairman for his diligent charges of indebtedness after the date of the access to higher education. I hope that work in crafting a tax bill that takes enactment of this Act. we can make progress on these fronts an important first step toward reform- Mr. DODD. Mr. President, I rise during today’s consideration of this ing the death tax. I look forward to today to offer a modest amendment bill. working with my colleagues in repeal- that will make a major difference to Mr. President, this amendment also ing this burdensome tax in the near fu- thousands of young men and women helps fill in the gaps in this bill. With ture. This sense of the Senate resolu- who chose careers in community serv- rising student indebtedness, students tion expresses our firm intent to work ice. literally cannot afford to take jobs as together toward this end. I ask for your As is well-known, the rewards of a Head Start teachers, nurses or police support in this important endeavor. community service job are not the sal- officers. As a result, we and all our I thank the chair and yield the floor. aries. Few choose teaching in Head communities lose the talents and ener- AMENDMENT NO. 558 Start, working for the Jesuit Volun- gies of these trained and motivated (Purpose: To amend the Internal Revenue teer Corps, or a career in nursing with young people. Code of 1986 regarding the treatment of the expectation of riches, big houses or The DODD amendment supports the cancellation of student loans) luxurious vacations. In fact, for too work of students who chose a career in On page 77, between lines 11 and 12, insert many in these fields the salaries are community service by ensuring that the following: substandard and pension and other ben- they are not disadvantaged in the SEC. . TREATMENT OF CANCELLATIION OF CER- efits are questionable. The rewards treatment of loan forgiveness associ- TAIN STUDENT LOANS. come from knowing at the end of the ated with their work. (a) CERTAIN LOANS BY EXEMPT ORGANIZA- day that they have made a difference It is not uncommon that public and TIONS.— private non-profit student loan pro- (1) IN GENERAL.—Paragraph (2) of section in the lives of children and others in grams provide for the forgiveness of a 108(f) (defining student loan) is amended by their communities. striking ‘‘or’’ at the end of subparagraph (b) Many of these careers require post- student’s loans should that student chose to go into certain community and by striking subparagraph (D) and insert- secondary education, and today, higher service fields. For instance, the Fed- ing the following: education means debt. In 1995–96, total ‘‘(D) any educational organization de- eral Perkins Loan programs provides federal student loan debt rose to over scribed in section 170(b)(1)(A)(ii) if such loan forgiveness for Head Start teachers, $24 billion dollars; $264 million in my is made— teachers in certain urban and rural ‘‘(i) pursuant to an agreement with any en- home state of connecticut. Nearly 7 areas, police officers, nurses, members tity described in subparagraph (A), (B), or (C) million students borrowed to meet the of the Armed Forces and certain oth- under which the funds from which the loan costs of college. ers. was made were provided to such educational Mr. President, I believe we must do organization, or However, the Tax Code currently dis- ‘‘(ii) pursuant to a program of such edu- more about this problem of rising stu- advantages those students who receive cational organization which is designed to dent debt. Not only are students de- loan forgiveness from the private sec- encourage its students to serve in occupa- terred from pursuing rewarding, com- tor. The amount forgiven by nonpublic tions with unmet needs or in areas with munity-related work, but they and entities is currently treated as income, unmet needs and under which the services their families are also being scared off which can result in much higher tax li- provided by the students (or former stu- from pursuing the dream of higher edu- dents) are for or under the direction of a gov- ability for the student, undermining cation at all. This undermines our the effect of this important benefit. ernmental unit or an organization described economy and nation as a whole; it is in section 501(c)(3) and exempt from tax Specifically, this amendment would under section 501(a). clear we will not be able to meet the expand section 108(f) of the Internal The term ‘student loan’ includes any loan challenges of the next century without Revenue Code so that an individual’s made by an educational organization so de- harnessing and nurturing the talents of gross income does not include forgive- scribed or by an organization exempt from all Americans. ness of loans made by tax-exempt char- tax under section 501(a) to refinance a loan For nearly 40 years, this is what fed- itable organizations, such as univer- meeting the requirements of the preceding eral higher education policy has been sities or private foundations, if the pro- sentence.’’ about—from the GI bill to Pell grants, ceeds of such loans are used to pay (2) EXCEPTION FOR DISCHARGES ON ACCOUNT the federal government has provided costs of attendance at an educational OF SERVICES PERFORMED FOR CERTAIN LEND- the means for millions of Americans to ERS.—Subsection (f) of section 108 is amend- institution or to refinance outstanding ed by adding at the end the following new attend college. Rising costs, and the in- student loans and the student is not paragraph: creasing reliance on loans to finance employed by the lender organization. ‘‘(3) EXCEPTION FOR DISCHARGES ON ACCOUNT them, is beginning to undermine our As under present law, the Section 108 OF SERVICES PERFORMED FOR CERTAIN LEND- central federal commitment. (f) exclusion would apply only if the ERS.—Paragraph (1) shall not apply to the There are some good things, but forgiveness is contingent on the stu- discharge of a loan made by an organization many missed opportunities, In the bill dent’s working for a certain period of described in paragraph (2)(D) (or by an orga- before us today. The modified HOPE nization described in paragraph (2)(E) from time in certain professions for any of a funds provided by an organization described Scholarship should be improved and I broad class of employers, so long as a in paragraph (2)(D)) if the discharge is on ac- support amendments to do so. The tax public service requirement is met. count of services performed by either such deduction for student loan interest, The exclusion also corrects an over- organization.’’ and some of the family savings provi- sight in the enactment of the income

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00079 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6472 CONGRESSIONAL RECORD — SENATE June 26, 1997 contingent repayment option under the days of the payment or distribution to pay able in taxable years ending before such date current student loan program, which for the repair or replacement of tangible pursuant to an election under section 165(i) provides low-income, high-debt stu- property which is disaster-damaged prop- of the Internal Revenue Code of 1986. dents with the option of stretching out erty. ‘‘(B) LIMITATIONS.— AMENDMENT NO. 561 their payments over 25 years. This pro- ‘‘(i) ONLY DISTRIBUTIONS WITHIN 2 YEARS.— (Purpose: To authorize the Secretary of the gram allows students to pursue inter- The term ‘qualified disaster-related distribu- Treasury to abate the accrual of interest ests in lower paying fields while con- tion’ shall only include any payment or dis- on income tax underpaymnets by tax- tinuing to meet their obligations to tribution which is made during the 2-year pe- payers located in Presidentially declared the tax payers to repay their student riod beginning on the date of the determina- disaster areas if the Secretary extends the loans. If the student makes payments tion referred to in subparagraph (D). time for filing returns and payment of tax for 25 years and still has a remaining ‘‘(ii) DOLLAR LIMITATION.—Such term shall (and waives any penalties relating to the balance, the Government forgives their not include distributions to the extent the failure to so file or so pay) for such tax- amount of such distributions exceeds $10,000 payers) loan. Unfortunately, when we enacted during the 2-year period described in clause Ordered to lie on the table and to be print- this vital program, we neglected to (i). ed. clarify that this forgiveness should not ‘‘(C) DISASTER-DAMAGED PROPERTY.—The Amendment intended to be proposed by be taxable. This amendment would term ‘disaster-damaged property’ means Mr. DORGAN. make this correction and fulfill the property— Viz: Government’s promise to needy stu- ‘‘(i) which was located in a disaster area on On page 211, between lines 5 and 6, insert the following: dents. the date of the determination referred to in SEC. 724. ABATEMENT OF INTEREST ON UNDER- This initiative has been scored by the subparagraph (C), and ‘‘(ii) which was destroyed or substantially PAYMENTS BY TAXPAYERS IN PRESI- Joint Tax Committee to have a mini- damaged as a result of the disaster occurring DENTIALLY DECLARED DISASTER AREAS. mal impact on revenue and therefore in such area. (a) IN GENERAL.—Section 6404 (relating to this amendment does not require off- ‘‘(D) DISASTER AREA.—The term ‘disaster abatements) is amended by adding at the end setting revenues. The administration area’ means an area determined by the Presi- the following: dent during 1997 to warrant assistance by the supports this initiative and it is also ‘‘(h) ABATEMENT OF INTEREST ON UNDER- Federal Government under the Robert T. included in Chairman ARCHER’s house PAYMENTS BY TAXPAYERS IN PRESIDENTIALLY Stafford Disaster Relief and Emergency As- bill. DECLARED DISASTER AREAS.— Mr. President, I believe this is a sim- sistance Act.’’ ‘‘(1) IN GENERAL.—If the Secretary extends (c) EFFECTIVE DATE.—The amendments for any period of time for filing income tax ple step we can take to assist thou- made by this section shall apply to payments sands of young people who chose ca- returns under section 6081 and the time for and distributions after December 31, 1996, paying income tax with respect to such re- reers in community service, and I urge with respect to disasters occurring after turns under section 6161 (and waives any pen- my colleagues to support it. such date. alties relating to the failure to so file or so AMENDMENT NO. 559 SEC. 725. ELIMINATION OF 10 PERCENT FLOOR pay) for any individual located in a Presi- (Purpose: To exclude from unrelated business FOR DISASTER LOSSES. dentially declared disaster area, the Sec- taxable income for certain charitable gam- (a) GENERAL RULE.—Section 165(h)(2)(A) retary shall abate for such period the assess- bling) (relating to net casualty loss allowed only to ment of any interest prescribed under sec- the extent it exceeds 10 percent of adjusted tion 6601 on such income tax. ‘‘(j) QUALIFIED GAMES OF CHANCE.— gross income) is amended by striking clauses ‘‘(2) PRESIDENTIALLY DECLARED DISASTER (1) IN GENERAL.—The term ‘‘unrelated (i) and (ii) and inserting the following new AREA.—For purposes of paragraph (1), the trade or business’’ does not include the ac- clauses: term ‘Presidentially declared disaster area’ tivity of qualified games of chance. ‘‘(i) the amount of the personal casualty means, with respect to any individual, any (2) QUALIFIED GAMES OF CHANCE.—For pur- gains for the taxable year, area which the President has determined poses of this subsection, the term ‘‘qualified ‘‘(ii) the amount of the federally declared during 1997 warrants assistance by the Fed- games of chance means any game of chance, disaster losses for the taxable year (or, if eral Government under the Robert T. Staf- other than provided in subsection (f), con- lesser, the net casualty loss), plus ford Disaster Relief and Emergency Assist- ducted by an organization if— ‘‘(iii) the portion of the net casualty loss ance Act. ‘‘(A) such organization is licensed pursuant which is not deductible under clause (ii) but ‘‘(3) INDIVIDUAL.—For purposes of this sub- to State law to conduct such game, only to the extent such portion exceeds 10 section, the term ‘individual’ shall not in- ‘‘(B) only organizations which are orga- percent of the adjusted gross income of the clude any estate or trust.’’ nized as nonprofit corporations or are ex- individual. (b) EFFECTIVE DATE.—The amendment empt from tax under section 501(a) may be so For purposes of the preceding sentence, the made by this section shall apply to disasters licensed to conduct such game within the declared after December 31, 1996. State, and term ‘net casualty loss’ means the excess of personal casualty losses for the taxable year ‘‘(C) the conduct of such game does not AMENDMENT NO. 562 violate State or local law.’’ over personal casualty gains.’’ (b) FEDERALLY DECLARED DISASTER LOSS At the appropriate place, insert the fol- DEFINED.—Section 165(h)(3) (relating to lowing: On page 211, between lines 5 and 6, insert SEC. SURVIVOR BENEFITS FOR PUBLIC SAFETY the following: treatment of casualty gains and losses) is amended by adding at the end the following OFFICERS KILLED IN THE LINE OF DUTY. SEC. 724. DISTRIBUTIONS FROM INDIVIDUAL RE- new subparagraph: TIREMENT ACCOUNTS MAY BE USED IN GENERAL.—Part III of subchapter B of ‘‘(C) FEDERALLY DECLARED DISASTER WITHOUT PENALTY TO REPLACE OR chapter 1 (relating to items specifically ex- LOSS.— REPAIR PROPERTY DAMAGED IN cluded from gross income) is amended by re- ‘‘(i) IN GENERAL.—The term ‘federally de- PRESIDENTIALLY DECLARED DIS- designating section 138 as section 139 and by ASTER AREAS. clared disaster loss’ means any personal cas- inserting after section 137 the following new (a) IN GENERAL.—Section 72(t)(2) (relating ualty loss attributable to a disaster occur- section: to exceptions to 10-percent additional tax on ring during 1997 in an area subsequently de- early distributions), as amended by sections termined by the President of the United ‘‘SEC. 138. SURVIVOR BENEFITS ATTRIBUTABLE TO SERVICE BY A PUBLIC SAFETY 203 and 303, is amended by adding at the end States to warrant assistance by the Federal OFFICER WHO IS KILLED IN THE the following new subparagraph: Government under the Robert T. Stafford LINE OF DUTY. ‘‘(G) DISTRIBUTIONS FOR DISASTER-RELATED Disaster Relief and Emergency Assistance ‘‘(A) IN GENERAL.—Gross income shall not EXPENSES.—Distributions from an individual Act. include any amount paid as a survivor annu- retirement plan which are qualified disaster- ‘‘(ii) DOLLAR LIMITATION.—Such term shall ity on account of the death of a public safety related distributions.’’ not include personal casualty losses to the officer (as such term is defined in section (b) QUALIFIED DISASTER-RELATED DISTRIBU- extent such losses exceed $10,000 for the tax- 1204 of the Omnibus Crime Control and Safe TIONS.—Section 72(t), as amended by sections able year.’’ Streets Act of 1968) killed in the line of 203 and 303, is amended by adding at the end (c) CONFORMING AMENDMENT.—The heading duty— the following new paragraph: for section 165(h)(2) is amended by striking ‘‘(1) if such annuity is provided under a ‘‘(9) QUALIFIED DISASTER-RELATED DISTRIBU- ‘‘NET CASUALTY LOSS’’ and inserting ‘‘NET governmental plan which meets the require- TIONS.—For purposes of paragraph (2)(E)— NONDISASTER CASUALTY LOSS’’. ments of section 401(1) to the spouse (or a ‘‘(A) IN GENERAL.—The term ‘qualified dis- (d) EFFECTIVE DATE.—The amendments former spouse) of the public safety officer or aster-related distribution’ means any pay- made by this section shall apply to losses at- to a child of such officer; and ment or distribution received by an indi- tributable to disasters occurring after De- ‘‘(2) to the extent such annuity is attrib- vidual to the extent that the payment or dis- cember 31, 1996, including for purposes of de- utable to such officer’s service as a public tribution is used by such individual within 60 termining the portion of such losses allow- safety officer.

VerDate Mar 15 2010 22:48 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00080 Fmt 0624 Sfmt 0634 E:\1997SENATE\S26JN7.REC S26JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 26, 1997 CONGRESSIONAL RECORD — SENATE S6473

‘‘(b) EXCEPTIONS.— graph and subparagraph (B) of paragraph (1) ‘‘(VI) the payment of interest. ‘‘(1) IN GENERAL.—Subsection (a) shall not shall not apply.’’ apply with respect to the death of any public (b) EFFECTIVE DATE.—The amendment AMENDMENT NO. 553 safety officer if— made by subsection (a) shall apply to years The PRESIDING OFFICER. And ‘‘(A) the death was caused by the inten- beginning after December 31, 1996. amendment No. 553 as a part of that tional misconduct of the officer or by such AMENDMENT NO. 564 agreement is agreed to. officer’s intention to bring about such offi- (Purpose: To provide for diversification in The amendment (No. 553) was agreed cer’s death; section 401(k) plan investments) ‘‘(B) the officer was voluntarily intoxi- to, as follows: On page 208, between lines 16 and 17, insert cated (as defined in section 1204 of the Omni- AMENDMENT NO. 553 the following: bus Crime Control and Safe Streets Act of (Purpose: To express the sense of the Senate SEC. . DIVERSIFICATION IN SECTION 401(k) 1968) at the time of death; or that the Internal Revenue Code of 1986 ‘‘(C) the officer was performing such offi- PLAN INVESTMENTS. (a) LIMITATIONS ON INVESTMENT IN EM- needs reform) cer’s duties in grossly negligent manner at PLOYER SECURITIES AND EMPLOYER REAL At the end of page 11, insert the following: the time of death. PROPERTY BY CASH OR DEFERRED ARRANGE- SEC. . SENSE OF THE SENATE REGARDING RE- ‘‘(2) EXCEPTION FOR BENEFITS PAID TO CER- MENTS.—Section 407(d)(3) of the Employee FORM OF THE INTERNAL REVENUE TAIN INDIVIDUALS.—Subsection (a) shall not Retirement Income Security Act of 1974 (29 CODE OF 1986. apply to any payment to an individual whose U.S.C. 1107(d)(3)) is amended by adding at the (a) FINDINGS.—The Senate finds that— actions were a substantial contributing fac- end the following: (1) the Internal Revenue Code of 1986 (‘‘tax tor to the death of the officer. ‘‘(D)(i) the term ‘eligible individual ac- code’’) is unnecessarily complex, having (b) EFFECTIVE DATE.—The amendments count plan’ does not include that portion of grown from 14 pages at its inception to 3,458 made by this subsection shall apply to an individual account plan that consists of pages by 1995; amounts received in taxable years beginning elective deferrals (as defined in section (2) this complexity resulted in taxpayers after December 31, 1996, with respect to indi- 402(g)(3) of the Internal Revenue Code of 1986) spending about 5,300,000,000 hours and viduals dying after such date. pursuant to a qualified cash or deferred ar- $225,000,000,000 trying to comply with the tax rangement as defined in section 401(k) of the code in 1996; AMENDMENT NO. 563 Internal Revenue Code of 1986 (and earnings (3) the current congressional budgetary (Purpose: To clarify the tax treatment of allocable thereto), if such elective deferrals process is weighted too heavily toward tax certain disability benefits received by (or earnings allocable thereto) are required increases, as evidenced by the fact that since former police officers or firefighters) to be invested in qualifying employer securi- 1954 there have been 27 major bills enacted On page 267, between lines 15 and 16, insert ties or qualifying employer real property or that increased Federal income taxes and the following: both pursuant to the documents and instru- only 9 bills that decreased Federal income ments governing the plan or at the direction SEC. . TREATMENT OF CERTAIN DISABILITY taxes, 3 of which were de minimis decreases; BENEFITS RECEIVED BY FORMER of a person other than the participant on (4) the tax burden on working families has POLICE OFFICERS OR FIRE- whose behalf such elective deferrals are reached an unsustainable level, as evidenced FIGHTERS. made to the plan (or the participant’s bene- by the fact that in 1948 the average Amer- (a) GENERAL RULE.—For purposes of deter- ficiary). ican family with children paid only 4.3 per- mining whether any amount to which this ‘‘(ii) For purposes of subsection (a), such cent of its income to the Federal Govern- section applies is excludable from gross in- portion shall be treated as a separate plan. ment in direct taxes and today the average come under section 104(a)(1) of the Internal ‘‘(iii) This subparagraph shall not apply to family pays about 25 percent; Revenue Code of 1986, the following condi- an individual account plan if the fair market (5) the tax code unfairly penalizes saving tions shall be treated as personal injuries or value of the assets of all individual account and investment by double taxing these ac- sickness in the course of employment: plans maintained by the employer equals not tivities while only taxing income used for (1) Heart disease. more than 10 percent of the fair market consumption once, and as a result the United (2) Hypertension. value of the assets of all pension plans main- States has one of the lowest saving rates, at (b) AMOUNTS TO WHICH SECTION APPLIES.— tained by the employer. 4.7 percent, in the industrialized world; ‘‘(iv) This subparagraph shall not apply to This section shall apply to any amount— (6) the tax code stifles economic growth by an individual account plan that is an em- (1) which is payable— discouraging work and capital formation ployee stock ownership plan as defined in (A) to an individual (or to the survivors of through excessively high tax rates; section 409(a) or 4975(e)(7) of the Internal an individual) who was a full-time employee (7) Congress and the President have found Revenue Code.’’. of any police department or fire department it necessary, on 2 separate occasions, to (v) This subparagraph shall not apply to an which is organized and operated by a State, enact laws to protect taxpayers from the individual account plan if not more than 1 by any political subdivision thereof, or by abuses of the Internal Revenue Service and a percent of an employees eligible compensa- any agency or instrumentality of a State or third bill has been introduced in the 105th tion deposited to the plan as an elective de- political subdivision thereof, and Congress; and ferral (as so defined) is required to be in- (B) under a State law (as in existence on (8) the complexity of the tax code has in- vested in the qualifying employer securities. creased the number of Internal Revenue July 1, 1992) which irrebuttably presumed (b) EFFECTIVE DATE.— Service employees responsible for admin- that heart disease and hypertension are (1) IN GENERAL.—The amendments made by work-related illnesses but only for employ- this section shall apply to employer securi- istering the tax laws to 110,000 and this costs ees separating from service before such date; ties and employer real property acquired the taxpayers $9,800,000,000 each year. and after the beginning of the first plan year be- (b) SENSE OF THE SENATE.—It is the sense (2) which is received in calendar year 1989, ginning after the 90th day after the date of of the Senate that— 1990, or 1991. enactment of this Act. (1) the Internal Revenue Code of 1986 needs broad-based reform; and For purposes of the preceding sentence, the (2) SPECIAL RULE FOR CERTAIN ACQUISI- (2) the President should submit to Con- term ‘‘State’’ includes the District of Colum- TIONS.—Employer securities and employer gress a comprehensive proposal to reform the bia. real property acquired pursuant to a binding Internal Revenue Code of 1986. (c) WAIVER OF STATUTE OF LIMITATIONS.— written contract to acquire such securities If, on the date of the enactment of this Act and real property in effect on the date of en- The PRESIDING OFFICER. Who (or at any time within the 1-year period be- actment of this Act and at all times there- seeks the floor? ginning on such date of enactment) credit or after, shall be treated as acquired imme- Mr. COATS addressed the Chair. refund of any overpayment of tax resulting diately before such date. The PRESIDING OFFICER. The Sen- from the provisions of this section is barred ator from Indiana. AMENDMENT NO. 565 by any law or rule of law, credit or refund of Mr. COATS. May I inquire now what such overpayment shall, nevertheless, be al- (Purpose: To expand non-Amtrak States’ use lowed or made if claim therefore is filed be- of the Intercity Passenger Rail Funds) the time situation is? fore the date 1 year after such date of enact- Beginning on page 189, line 24, strike ‘‘and’’ f ment. and all that follows through page 190, line 1, MORNING BUSINESS SEC. . REMOVAL OF DOLLAR LIMITATION ON and insert the following: BENEFIT PAYMENTS FROM A DE- ‘‘(III) capital expenditures related to rail The PRESIDING OFFICER. We are FINED BENEFIT PLAN MAINTAINED operations for Class II or Class III rail car- now in a period of morning business FOR CERTAIN POLICE AND FIRE EM- riers in the State, with Senators being recognized for up PLOYEES. ‘‘(IV) any project that is eligible to receive to 10 minutes. (a) IN GENERAL.—Subparagraph (G) of sec- funding under section 5309, 5310, or 5311 of Mr. COATS. Mr. President, I would tion 415(b)(2) of the Internal Revenue Code of title 49, United States Code. 1986 is amended by striking ‘‘participant—’’ ‘‘(V) any project that is eligible to receive ask to speak as if in morning business. and all that follows and inserting ‘‘partici- funding under section 130 of title 23, United The PRESIDING OFFICER. The Sen- pant, subparagraphs (C) and (D) of this para- States Code, and ator has that right.

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